Gold and silver began to take off last night and extended their gains in London and during the early Comex trading hours. Then The Gold Cartel did what they usually do, cap the advances. Gold made it to $1435 and silver to $36.14. The rest of the Comex trading session was spent in retreatm and for perhaps the thousandth time since I began this commentary 12 ½ years ago, not one person outside the GATA camp will make any mention about The Gold Cartel, and why gold and silver didn't do what they ought to have done today.

The end of the day produced solid gains for both precious metals, but how many of you were excited at the Comex close compared to your feelings early in the trading day? Gold closed much closer to its lows of the day at $1424.40 than near its highs. Silver fared much better. The fact that it closed at the psychologically important $36 level, with gold under such pressure as the day wore on, was very impressive. Still, the cabal forces took much of the excitement out of the day, which has been a part of their agenda for a very long time.

RG:

Bill,..
Has the 1% upside rule ever been more obvious than in these last few weeks?..

It too will end with a nasty bang,..
Best,..
Rich (Live from ?The Scarborough Bullion Desk?)

Bill,..
Talk about controlled economics,..

Just done a little research into daily movements of Ol Yella since November last year,..

I have based my input data on estimations of chart analysis on Kitco of the Comex Open Pit daily closes,..

I have only included daily movements of $20 or more,..

Here are my findings,..

Rises:

6 in total;

4th Nov ($1338-$1382) - $44
30th Nov ($1366-$1386) - $20
28th Dec ($1383-$1405) - $22
28th Jan ($1319-$1339 - $20
3rd Feb ($1332-$1352) - $20
1st Mar ($1410-$1430) - $20

Falls:

9 in total;

Nov 3rd ($1357-$1337) - $20
Nov 12th ($1406- $1366) - $40
Nov 16th ($1370-$1340) - $30
Dec 8th ($1408-$1383) - $25
4th Jan ($1422-$1378) - $44
14th Jan ($1387-$1362) - $25
20th Jan ($1372-$1347) - $25
3rd Mar ($1437-$1416) - $21
15th Mar ($1425-$1393) - $32

As can clearly be seen the price is seemingly capped around the $20 level on rises, but there seems no such constraint on falls (4 of which have been $30 or more),..

Since the beginning of November the price of gold has only seen one major daily rise in excess of $20 and that was on 4th November ($44),.. The only other occasion it has exceeded the $20 cap was on 28th December, but this was only by a small margin ($22),..

It would seem therefore that since early November, there has been a massive operation to curtail the advance in gold prices, which, if so, has perversely rewarded any buyer over this period with a growing discount to real market levels!?!..

Discounts rarely last for too long from my experience,..

I think we?ve a monster move in the making,..
Best,..
Rich (live from ?The Scarborough Bullion Desk?)

The AM Fix was strong at $1427.75 and the PM Fix was much stronger at $1432. Then, it was all PLAN B, set in motion by The Gold Cartel.

The gold open interest fell 3011 contracts to 500,554, which tells us the rally on Friday was on more shortcovering until the advance was capped. The silver open interest lost 468 contracts to 133,076.

The Café Sentiment Indicator was unusually weak this weekend, thus no surprise that today was such a good one for our camp.

Can the general gold market commentary be any worse? Save-haven it is when gold goes up and no safe haven it is when the price goes down. I think the gold media writers do their thing for first graders.

The best news of the day was the silver action. While the price was capped, it closed closer to its highs than lows, and its gains far exceeded that of gold on a percentage basis. Silver is becoming more of a problem for The Gold Cartel each passing week. In early Access Market trading made new highs for the day at one point and remains in EXPLOSIVE mode!!!

Behavioral Finance Report

*Get the DOW back up above 12,000 is a main objective for the PPT.

*The yield on the 10 yr T note rose to 3.32%. Not even low mortgage rates are of much help to a moribund housing industry in the US.

*Cap gold on a daily basis is the name of the game.

The dollar fell .15 to 75.41, a new low for the move.

Australia's Nick Laird...

Hi Bill
It's been a long time coming.....
Cheers Nick

Th