"Gold prices were trying to benefit Monday from a sharp sell-off in the Chinese equities overnight. China’s stock market saw the biggest one-day drop in eight years, as the Shanghai composite index closed 8.5% lower Monday. “There is so much manipulation, someone is front-running or trying to manipulate the price against an already building short position – now it appears to be a crowded trade of excessive shorting in gold and we are due for a rally ,” says Frank Holmes, CEO at U.S. Global Investors. “It appears there are two things that happened last week- someone knew that the Flash PMI out of China was going to be negative and they hit the market a week ago and it seemed to be synchronized,” he says. During Asian trading hours last week, investors dumped more than $500 million worth of bullion in New York in a matter of seconds, with selling occurring almost simultaneously on Chinese markets, Holmes explains. “The sheer scale of order flow across both the Shanghai Gold Exchange and the Shanghai Futures Exchange, where combined volume on Monday surpassed the notional equivalent of 250 tons, led many market trackers to speculate that Chinese hedge funds were behind the move,” Holmes says. The selling pressure in China is coming amid concerns the Chinese government will not continue its recent efforts to prop up Chinese share prices, including forcing sellers to the sidelines and limiting trading in some shares. Holmes adds we could see a gold rally as early as this week. “All this talk about rates going to rise is bizarre because ten-year government bonds are making a new low, lower than a year ago and lower than two years ago - I don’t see anything for them to go higher with,” he says ahead of this week’s Federal Open Market Committee (FOMC) meeting, which begins Tuesday morning and ends with the release of its monetary policy statement Wednesday afternoon. Tune in now for more comments from U.S. Global Investors' CEO Frank Holmes. Kitco News, July 27, 2015."
And the big picture:
TTIP, TTP And NWO Vs China And Gold - Cutting To The Chase Of Geopolitical Sleepwalking With Velina Tchakarova.
It can be heavy for Sunday morning, but I will throw few more here: AIIB, China with SDR and OECD. GMOs have produced great audience for the evening talk shows and FB time line, but some bright people are still connecting the dots. I will put my angle on this brilliant piece from Velina Tchakarova. Why China buys Gold and what is really happening with the world now? If it is a newly found FED printed prosperity than why do we have constant wars from Ukraine to Syria, ISIS, Iraq, Armenia, Azerbaijan - just to name a few? I guess it is the same old War For Resources, hopefully it will stay Cold and Currency Wars are just part of this master plan. NWO is coming, but maybe it will not be the same as hoped by some and these people are very angry and loosing their cool over it - welcome to the new brave world, which is just trying to get off The Oil Needle.
Some Central Bankers in the world were popping champagne last week on the FED's Mission Accomplished and "the total meltdown of Gold". Some other Central Banks were just buying more of it. Who will be right - nobody knows for sure, but I like the sentiment. Hedge Funds are Net Short Gold for the first time, "China has announced much lower reserves than expected" and I personally tired even to think about the "barbaric relict" which is going to zero. Before I make my best trade shorting Gold into the dust I would like to throw some charts and links for Lithium induced meditation.
First chart above actually shows a wash out capitulation and Buy signal on Volume and Candles, all indicators are positive for reversal. Dan Popescu @PopescuCo has published few very interesting charts below and HedgehogTrader @HedgehogTrader has exceeded his monthly limits of tweets about the yellow metal on Friday. In case if rumours about Gold's Death are exaggerated, TNR Gold's "Vault" is still secured in Alaska and guarded by bears waiting for its time to come.