The story not told often enough is the utterly huge short gold futures contract positions put on by JPMorgan immediately when the USFed announced its $1 trillion monetization plan in mid-March, and the additional batch of gold short contracts they put on during the G20 Dollar Funeral event in early April. Perhaps the USDept Treasury can access some of the $1.9 billion from the AIG car insurance business unit sale to Zurich Financial to fund more market corruption and interference, with a simple handoff from to their free market brothers at JPMorgan. Still, despite all the harmful, unregulated, and relentless pressure put on precious metals, their prices refuse to be pushed down. The gap between the physical gold price and paper COMEX price continues to widen. The story behind the scenes that captured my attention centered on German demands to return all their gold bullion held in custodial accounts on US soil. The deep source contact said something like, “the German demand is making the US bank nazis sweat bullets. Pressure on COMEX will get much worse.” Expect even more pressure on the June gold contract than was seen with the March gold contract, as far as delivery default is concerned. Deutsche Bank saved the COMEX bacon with a last minute 850,000 ounce delivery, courtesy of the Euro Central Bank at the eleventh hour. Such are the games not told on national financial networks, but which are central to Hat Trick Letter analysis.

The gold price is busy carving out the Right Side Handle to a messy Cup & Handle reversal pattern, one which is testing the patience of yellow metal investors. When the weekly stochastix cycles down a little farther, the consolidation should be at an end. We observe not so much a battle of monetary inflation versus asset deflation, as with free market pricing structures versus disruptive USGovt custodial management that will someday be chronicled as the most corrupt in modern history. Asian and Arab creditors to the USTreasury Bonds are not pleased with what the management of either the USGovt bond securities or gold, and they hold both in great volume. The target for gold remains almost 1300, with a breakout inevitable.

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