If you are one of my Facebook friends, you saw this morning what I said was going to happen on the gold market at open of the NY Futures, 9am PST. This is what I was posting (image on right). You'll see that I said at 7:35am, that in about 1.5 hours, the price of gold was going to drop at the New York opening of the Futures Market. 35 minutes after the opening bell, it dropped. Six minutes later the drop continued. Then, people who see these dips will start to buy in, and the market price should level somewhat, stripping the Fed from some cash. Lose cash did it? Well the Federal Reserve can just print some more to replace it!!!
Why does this happen? Because world markets open earlier than the US Markets. These markets dictate the world price of gold. When NY opens, the Fed dumps a bunch of paper contracts (Reserve banks still have a lot of gold holdings - we all are told to believe, but nobody is opening Fort Knox for us) just enough to trigger computerized programs to also dump. You'll see two dumps in the last chart, that is two really low sales.
Gold is a very very small market. It can be manipulated easily. If I sell a large enough order to be visible on the markets for, say, $400, then the new market price becomes $400. Right? So they do this to try to manipulate Gold prices. When NY Futures closes, and the market goes back to the world, the world goes, "oooh - bargain hunting!"
I never ever suggest trading in markets. It is a super huge time suck and really risky. But - if you did - you could make a chunk of money daily by buying and shorting based on this knowledge alone.
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