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GoldFix Weekly: How to Stop Silver Manipulation

Welcome. GoldFix Weekly is original content. The goal is to give you, the reader, some basis for looking at markets as you prepare your own trading week. Second, it aims to give you more tools, or at least the basis for developing your own tools to navigate markets. To that end we expect there will be changes based on feedback. Gold is the jumping off point for analysis.

This Issue
  1. Markets: weekly summary
  2. Precious: gold summary
  3. Tools: educational videos
  4. Technicals: active trading levels
  5. Charts: related markets
  6. News: stories on metals and markets
  7. Calendar: next week
  8. Disclaimer: read this
1. Markets
Capital Markets Summary
After an ugly plunge Monday morning driven by Covid-Delta variant fears, stocks soared the rest of the week. The Nasdaq outperformed and the Dow lagged. Cyclicals outperformed Defensives on the week but both ended higher.
Bonds were bid on Monday as the world briefly fell apart but sold back to unchanged on the week. 10Y Yields tried to get above 1.30% and hold but could not. The dollar finished the week slightly higher. Gold’s modest drop on the week was its first in 5 weeks.
Oil, Stock and Bitcoin Futures
Oil, Stock and Bitcoin Futures
Crude rebounded nicely as the week wore on after its own Monday plunge. Copper had a good week as well. Only Grains truly suffered on the commodity side. Soy beans had a tumultuous ride lower all week. Crypto was largely unchanged but it rallied strongly right before and continued after the Bitcoin conference held Wednesday in which Elon Musk, Jack Dorsey, and Cathie Wood all spoke with guarded euphoria on its potential.- Full recap
2. Precious
Daniela Cambone Interviews First Majestic CEO Keith Neumeyer on Silver Price Manipulation
Stansberry Research
NEW: @keith_neumeyer CEO of @FMSilverCorp gets candid with our @DanielaCambone about the ongoing silver price manipulation he feels the industry faces... and how to fix it.

$AG $SLV

WATCH: https://t.co/1iKxhWIvrz https://t.co/TFngfPCzip
Activity Recap
Gold had some good intraday swings. But it is hard to get excited about the week’s net change. It was a light data week with few external events to drive price geopolitically. Strong Bonds were good for Gold and Silver. The strong dollar was not. This week the combination of strong dollar and the magnetic effect of the $1800 and $25 strike prices were too much to achieve liftoff in the metals.
Gold Daily with some Moor Levels
Gold Daily with some Moor Levels
The metals have also decoupled from the drop in real yields also for now. Stronger Bonds and stable inflation expectations combined to lower real yields even further. This makes the opportunity cost of holding Gold even less a factor and has for the past 2 years been very supportive for price. Next week should determine if Gold cares to close the gap by rallying or if Real Yields become less negative.
Courtesy Zerohedge and Bloomberg
Courtesy Zerohedge and Bloomberg
Open interest continues to drop as futures activity wanes due to seasonal forces as well as post Basel 3 book squaring. We continue to assert the market will gyrate higher over the intermediate term due to this activity. Wider intraday moves, less volume, and cost pressures will continue to conspire to make a good day-trader and stacker market. It is a poor market for institutional hedge funds.
For the past month we have been repeatedly saying “Gold hates the teens”. This means it rarely finds a comfort zone in the $1813 to 1819 area. There is a corollary to this that is less pithy. Gold also hates the area between $1789 and 1780. The reason for both “no-pass zones” is derivative based.
The Gamma Trap
The Gamma Trap
Large Option open interest creates strong gravitational pull towards the strike. Past a certain price above or below the $1800 area, gamma hedgers dissipate, the gravitational pull of the strike recedes, and escape velocity is reached. Note the violent rejections intraday this week of those areas. What must be remembered is that if either of these areas is pierced intraday, the market could skate another 1-2% in the direction of the break. Be aware.
3. Tools
CLIP: When Will Gold Get a Gamma Squeeze?
Billionaire Culture: Twitter CEO Trolls Elon Musk
Elon Musk Announced during a broadcast with Jack Dorsey that he had bought Ethereum as well as Bitcoin. Jack is a Bitcoin loyalist (Maxi) and does not see Ethereum as a valid alternative. The next day Jack tweeted the twitter hashtag #ETH. Given that Bitcoin’s hashtag is #BTC one would think ETH would stand for Ethereum right? Wrong. It stands for Ethiopia. Elon’s purchases are not worthy of a hashtag it seems in the twitter CEOs eyes. Jack had to troll Elon a little to save face.
Clip: Why Gold Hates the Teens in 1 minute
Sunday Session: Mock Trading and Technical Shenanigans
4. Technicals
Report Excerpts Courtesy MoorAnalytics.com
Upside:
Look for lower timeframe possible exhaustion in the $1,808.9-10.7 area. Look for lower timeframe possible exhaustion in the $1,812.9-3.2 area. Sell against $1,815.9 (-1.2 tics per/hour starting at 8:20am); get long on a decent penetration and/or pullback above and look for decent strength to come in. If we break above here decently and back below decently, look for decent pressure to come in. Look for exhaustion again in the $1,834.6-5.0 area. If we break above and back below, look for pressure. Sell against $1,845.7-7.5; get long above. Sell against/into $1,854.6-59.7 as possible exhaustion. Sell against $1,870.4-2.0; get long above.
Downside:
Get short on a decent penetration and/or pullback below 17981-79; and look for continued pressure. If we break below decently and back above decently, look for decent short covering. If we break below $1,778.2 and back above, look for short covering. If we break below $1,768.0 and back above, look for short covering.
Moor Redacted Excerpt
Moor Redacted Excerpt
Bitcoin Futures
Bitcoin Futures
5. News
Some relevant news from a trading perspective
1-Gold Trader: “How Easy It Is” To Manipulate Metals Markets
They did it over and over and over again. They took pride in their skill to manipulate prices. They took pride in ripping off other traders. They bragged about it.”
That is how Scott Armstrong, a trial attorney in the U.S. Department of Justice’s fraud division, described two former traders at Bank of America’s Merrill Lynch unit charged with manipulating precious-metals markets with fraudulent trades.
According to the government, the pair used spoofing orders in gold and silver markets for several years, mostly in 2010 and 2011. As Bloomberg’s Bre Bradham reports, chat logs introduced as evidence against Edward Bases and John Pacilio showed the two traders bragging about how easy it is to manipulate prices.
“…that does show u how easy it is to manipulate it sometimes,” Bases wrote minutes after one such manipulation.
They are not alone in this act. In the last few years, as the government has cracked down on market manipulation, we have seen many banks get pinged for manipulating metals markets…- Source: Zerohedge
  • Takeaway 1: The market is manipulated! Told you!
  • Takeaway 2: Not any more, they have cracked down on it. Better late than never. Justice prevails
  • Net-Net: The horse has left the barn, the barn is burned down, and the horse moved to Bitcoin and Asian metals markets. They only get caught after the well has run dry and are expendable to satisfy the regulatory bureaucrats. Comex is on the wane and China is on the rise. No manipulation means no trading in US metals. Fact.. Also- people don’t manipulate now, algos do. Depose programmers to catch thieves.
2-Goldman Sachs Settling Crypto ETPs in Europe: Sources
Goldman Sachs’ prime brokerage unit is clearing and settling cryptocurrency exchange-traded products (ETPs) for some hedge fund clients in Europe, according to two sources with knowledge of the matter.
Goldman Sachs isn’t the only bank making such a move. Bank of America, which, as reported by CoinDesk earlier in the week, has also been offering the clearing and settlement of cryptocurrency ETPs for hedge funds, as the adoption of crypto by institutions gathers pace. 
Earlier this week the Financial Times also reported that BNY Mellon has backed a new crypto trading platform called Pure Digital, following in the footsteps of its rival State Street. The move into crypto ETPs follows the relaunch of Goldman’s cryptocurrency trading desk in March.
Bank of America has also approved the trading of bitcoin futures for some clients and is clearing cash-settled contracts, CoinDesk reported last week.
Crypto ETPs are traded on exchange, much like equities and ETFs, and track the performance of an underlying asset. Their popularity has been growing as they allow clients to invest in crypto without having to invest in the underlying digital assets themselves. - Source: CoinDesk
  • Takeaway 1: Banks are going to manipulate Bitcoin
  • Takeaway 2: Stop it. They are moving toward regulated exchanges and this will help investors participate.
  • Net-Net: What used to be retail investors front running big whale orders will now be banks front running captive client orders. The game is over for the public. The banks have a new cash cow and worse, they will determine the settlements of the derivatives because they are the professionals. Remember the settlements of the CDS and CMOs in the “Big Short?”
6. Charts
Gold
Slightly weaker
Slightly weaker
Silver
Underperformed Gold
Underperformed Gold
US Dollar
Slightly higher
Slightly higher
Bonds
Flat on the week
Flat on the week
Treasury Inflation Protected Bonds
Inflation Expectations Steady to Higher
Inflation Expectations Steady to Higher
7. Calendar
Some of the upcoming week’s key data releases and market events
MONDAY, JULY 26
  • 10 am New home sales (SAAR) June
TUESDAY, JULY 27
  • 8:30 am Durable goods orders June
  • 8:30 am Nondefense capital goods orders, excluding aircraft June
  • 9 am S&P Case-Shiller home price index May
  • 10 am Consumer confidence index July
  • 10 am Housing vacancies Q2
WEDNESDAY, JULY 28
  • 8:30 am Advance trade in goods June
  • 2 pm Federal Open Market Committee announcement
  • 2:30 pm Fed Chair Jerome Powell press conference
THURSDAY, JULY 29
  • 8:30 am Initial jobless claims (regular state program) July 24
  • 8:30 am Continuing jobless claims (regular state program) July 17
  • 8:30 am Gross domestic product, first estimate (SAAR) Q2
  • 10 am Pending home sales index June
FRIDAY, JULY 30
  • 8:30 am Employment cost index Q2
  • 8:30 am Personal income June
  • 8:30 am Consumer spending June
  • 8:30 am Core inflation June
  • 9:45 am Chicago PMI July
  • 10 am UMich consumer sentiment index (final) July
Main Source: MarketWatch
Bitcoin Alarm Clock- strong language, bad dancing, great fun
8. Disclaimer
Disclaimer : Nobody is telling you to do anything here. Anybody who tells you to do something without first intimately knowing your personal situation is irresponsible at best and manipulative at worst. Worse, anyone who acts on other people’s opinions without first doing an inventory of their own situation shouldn’t be surprised if they lose money.
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