Gold Selling “Malevolent Force”? – Dennis Gartman

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Gold Selling “Malevolent Force”? – Dennis Gartman

Dennis Gartman, author of the institutionally well followed ‘The Gartman Letter,’ has asked questions about gold’s peculiar price action last week and raised the question as to whether there was official central bank manipulation of gold prices.

Gold was 2.4% higher in October but fell 2% last week as the Fed again suggested they may soon increase interest rates. Gartman’s assertion is significant as he is no so-called ‘goldbug’. In fact, he is the darling of Wall Street, Bloomberg, CNBC and is highly respected and followed by large hedge funds and financial institutions.

Gold in USD – 1 Month

He has been bearish on gold in recent months but the recent turmoil in currency markets has Gartman bullish on gold also in dollar terms since August.

“I think for the first time in a while, you can actually say the lows may have been in dollar-dominated gold,” Dennis Gartman told CNBC’s “Fast Money.”

Gartman is on record regarding his belief that gold is in a long term bull market in all currencies. 

Here is the key extract regarding potential gold manipulation from the Gartman Letter on Friday:

“As for the precious metals, the selling late Wednesday and all day yesterday was indeed severe, and even our positions in gold/euro and gold/yen have seen severe damage wrought upon them.

We find it hard to believe that the mere suggestion by the Federal Open Market Committee in its post-meeting communique on Friday that “liftoff” on the overnight Fed funds rate may take place at its December meeting can be responsible for this sort of egregious, serious, and now relentless selling, and we are almost of the mindset associated with the likes of the gold bugs and GATA that some malevolent “force” was behind the selling.

However, we are not going to travel down that road at the moment and sit tight with our positions, believing that the continued “experiments” with QE undertaken by the Bank of Japan and the European Central Bank shall work to the detriment of their currencies and to the support of gold. Nonetheless, the last 36 hours have been terribly dismaying …”

GoldCore Note: As ever, we view such manipulation as an opportunity for investors as it allows them to accumulate gold at artificially depressed prices.

The history of manipulation of the gold market is of short term success followed by ultimate failure and then much higher prices as was seen after the failure of the “London Gold Pool” in the late 1960s and gold’s massive bull market in the 1970s.

The golden beach ball has been pushed near the bottom of the ‘gold pool.’ The lower it is pushed in the short term, the higher it will surge in the long term.

 

DAILY PRICES
Today’s Gold Prices: USD 1135.80 , EURO 1030.86 and GBP 733.86 per ounce
Friday’s Gold Prices: USD 1147.75, EUR 1042.70 and GBP 748.04 per ounce.
(LBMA AM)

Gold closed at $1141.50 on Friday a loss of $4.30 and  -1.98% overall for the week.  Silver lost $0.08 to close at $15.52, showing a -2.14% loss for the week.   Platinum lost $6 to $982.

Gold fell 2% last week as the Fed again suggested they may soon increase interest rates. However, it was 2.4% higher in October due to strong demand for physical gold bullion globally and especially in Germany, India and China. 

We are now entering gold’s seasonal sweet spot from early November to the end of February as we enter the Indian festival and Chinese New Year periods.

 

IMPORTANT NEWS

Asian shares slide as soft China surveys, U.S. data sap risk appetite – Reuters

2015 American Eagle gold bullion sales already well beyond 2014 total – Coin World

United States Mint Silver Bullion Sales Headed for New Record – NewsMax Finance

U.S. Mint American Eagle gold coin sales tumble in October – Reuters

Gold dips to 4-week low on U.S. rate hike “fears” – Reuters

IMPORTANT ANALYSIS

Is “Malevolent Force” Behind the Gold Selling? – Dennis Gartman (login required)

Financial Talking Points: Is Greece’s financial turmoil over? – Telegraph

The most prosperous countries in the world, based on happiness and financial health – Telegraph

Euro Banks Barely Cut Bad Debt Levels Under ECB, Linklaters Says – Bloomberg

The bubble in London property – MoneyWeek

 

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taopraxis's picture
taopraxis (not verified) Nov 2, 2015 5:06 PM

People are justified in mocking the poor man but he is doing the world a great service by showing people what happens to the typical trader.

I just pulled the plug on my last stock position and ended my own trading career, today. The past year has been brutal. I got caught in last fall's short squeeze, in the commodity downdraft over the summer and finally in the current short squeeze. Third time's the charm. I'm calling it a day. I do not have to do this. I've got enough money.

Cash and gold are all I'll hold for the duration of my life. If gold tracks lower, I'll simply trade my cash for more gold. If gold goes up, I'll shift the balance in the other direction. Nice and simple, just the ticket. No regrets...

FreeNewEnergy's picture

Whatever the writer is smoking, I'd really like some.

"...he [Gartman] is the darling of Wall Street, Bloomberg, CNBC and is highly respected and followed by large hedge funds and financial institutions."

Seriously? Gartman changes his mind about as often as I change my socks (at least three times a week).

Get a grip. Gold is manipulated, as are stocks, bonds, oil, gas, the price of cold cuts and Grandma's COLA.

The darling of Wall Street, indeed. Probably because Gartman sucks cock so werll.

Rakksan's picture

Ratman,a fell followed fool.

Zero-Hegemon's picture

More commentary from #GartmanBrah

arbwhore's picture

Gold and silver commitment of traders EXTREMELY bearish. Likely to get some serious downdraft. Gartman is the icing on the cake.

CarpetShag's picture

Would you care to impart the price levels, stops, and time frame of your positions so that we can verify your predictions?

arbwhore's picture

No levels. Stop are for chumps. Time frame.. two weeks at most but probably sooner. Silver specs have NEVER been more bullish. That is not a good sign. Unless something extraordinary like Comex fails to pay out on positions, its all looking bad for PMs in the near term.

undertow1141's picture

THe answer to your question is probably.......................zero. 

Bay of Pigs's picture

Gartman has never understood gold or accepted the facts surrounding it. Many have documented how the futures market has been, and continues to be, manipulated and horribly distorted. GATA, ZH, Paul Mylchreest, Adrian Douglas, Andy Hoffman, Turd Ferguson, and Dave Kranzler to name but a few, have all provided solid analysis on this subject. I’ve yet to see any rational or logical arguments refuting these facts and data that clearly do not support the claims made that this is legitimate hedging done by parties with a vested interest in the sector (miners, PM funds, and especially the bullion banks). The fact is, because of the massive paper dumps via HFT (mostly done at very at illiquid times), the LBMA and COMEX have become a farce where no real price discovery is taking place. Nobody would ever trade the vast amounts of contracts intentionally unless they wanted to move the prices lower and very quickly. The numbers bear this out and nobody has provided a reasonable explanation for it. If they do, lets hear it.

<crickets>

Anasteus's picture

The whole Gartman's story is an ongoing propaganda along the lines of hammering the perception of gold. He's is always talking about paper when referring to gold. Identifying gold with paper and consequent paper dump are two main stage properties in the gold farce.

However, the GoldCore's note below is sober and correcting.

CarpetShag's picture

This post is beyond moronic.

KnuckleDragger-X's picture

Gartman bullish on gold...uh-oh.....

Tim Knight from Slope of Hope's picture

Triple digits, here we come!

 

Now can the man PLEASE get really, really bullish on equities? For the love of all that is holy.