Back on Tuesday I wrote that "they would be coming again". And so they are. What should come as no surprise is that today's manufactured selloff was prompted/signaled by another bearish report from Goldman Sachs.
In case you're wondering: Yes, you have seen this before. Recall that back in April of 2013, the criminals at Tungstenman issued a bearish report on gold just days before the major raid of April 12-15. Of course, all the while, Goldman was using the weakness to accumulate a massive long position in the GLD for the proprietary accounts. Muppets beware!
So what happened last night? Goldman once again released a "bearish" report on gold where they advised that they were "selling with conviction" with price above $1300. This story hit ZeroHedge at 8:44 pm and gold was sent reeling shortly thereafter:
https://www.zerohedge.com/news/2014-07-23/goldman-goes-schizo-gold-boost...
It should then come as no surprise that the hammering has continued on the Comex this morning. The intent was to take gold down today and there is no stopping them. At this point, is is very important that you recall the warning I gave you just two days ago. The post can be found here: https://www.tfmetalsreport.com/blog/5962/here-they-come-again and it concluded with this warning:
"The point of this is to warn you but, more importantly, remind you that this is all managed and purposeful. The Evil Cartel Banks are desperately trying to knock price back down and below the main trendline that we've been following all year. Will they be successful? Maybe. Last week's geo-political events caught everyone, including The Forces of Darkness, by surprise and it clearly disrupted their intentions. With the overnight action, though, they've clearly shown their intent to resume their current operation. Let's watch for support first at the bottom of the 5-week range near $1305, then at the lows last week near $1292 and then at the all-important trendline and $1280."
And it is critical that you keep all of this in mind this morning. Note that the report from Goldman also stated that they very much hate copper, too, along with iron ore. But yet, copper is actually UP today by 1.5%. Do you now see how all of this fits together? The Goldman piece was purposefully designed to give gold a shove to the downside, breaking support and the bottom end of the range at $1305. This then inspired/allowed follow-on selling that has since taken gold down to the support of last week's lows near $1292. Will they be successful in taking those lows out, too? Probably. Why? Because their ultimate goal remains the main trendline that we've been following all year. It is the defense of that trendline that led The Banks to issue 100,000 new net shorts over the past 6 weeks and it is the defense of that trendline that is behind this current beatdown scheme.
In the short term, the options sweet spot likely remains near 00 so the major effort to push down toward and below the trendline may hold off until mid week next. Regardless, just know that this is obviously their intention and goal and plan/prepare accordingly.
Since late June, I've been telling you that I wanted to see price come down and "ride" that trendline as support before turning higher again and charging to the next level, which would now be getting back above 45. So, all of this is going exactly as planned and hoped. It just took a little longer to develop than I had initially expected. Nothing has changed my forecast, though. I still expect strong support at the trendline and the area between 70 and 80. From there, I expect price to reverse and turn higher in August, moving through 45 and firmly establishing to all willing to look that The Bottoms are in and that the forced correction from 2012-2014 is over.
I'll conclude this post with one more snippet from Tuesday:
"You've been warned. Again, though, understand what's going on and use this knowledge to your advantage. Get ready to BTFD and profit from the rally into year end."
TF
