Today London metals trader Andrew Maguire spoke with King World News about stunning developments in the gold market and what the massive sovereign buyers are doing in the physical market as well as what the commercials and hot money are doing in the paper market. Below is what Maguire had to say as the war in the gold market continues to rage.
Maguire Warned His People This Smash Was Coming
Andrew Maguire: “I’ve advised over the last couple of days that the commercial traders (bullion banks) have been aggressively targeting the 50-day moving average in order to trip off very large long-stop positions (sell orders)….
“Into the afternoon fix today they finally succeeded in getting those longs liquidated. This also brought in the expected follow-through momentum short selling. What is absolutely clear is that these commercial banks are aggressively covering their short positions and also covering in the ETFs at a rigged discount.
So that KWN readers fully understand what is happening here, this is the daily reset that is required in order to set the stage for the next stair-step higher in the gold market. Because the commercial banks colluded, as they always do, the high-frequency trading algorithms (HFTs) achieved this oversold condition in the blink of an eye.
Over 53 Tons Of Paper Gold Liquidated In Minutes!
Over a staggering 53 tons of paper supply was liquidated immediately as gold breached the 50-day moving average. The weak-handed longs have taken serious losses here.
Sovereigns And Commercials Buying
But the important thing, Eric, is who is on the buy side right now. The sovereigns and central banks are buying massive quantities of gold in the physical market. This is happening at the same time the commercials are aggressively covering short positions.
Asian physical buyers are accumulating extremely aggressively here as the shorts try to press their advantage. But, Eric, it's important to note that I see this as the complete opposite to when I told my people to lighten up when the price of gold was over $1,300, as the hot money had chased the price of gold well above the price of the aggregated sovereign-sized buy orders.
Hot Money Panicking
Now the open interest is unwinding and the hot money is panic-selling and even going short. From a physical perspective, we are at the complete inverse of what we were seeing in the market above the $1,300 level. Hence, I will be holding long positions and seeking to add silver swing trades.
Massive Sovereign Physical Buying
The key point here, Eric, is that is that the sovereign buyers have been aggressively buying for days now. And when that 53 tons of paper gold was puked up in just 20 minutes, the sovereigns were buying every single ounce of that in the London physical market that they could get their hands on.”
No comments:
Post a Comment