Metals Analysts Rage Against the Machine(s)

Posted by on April 13th 2012 in Bailout, CFTC, China, Federal Reserve, General Economy, Gold, JPMorgan, Monetary Policy, Quants, Silver, Wall Street | Be the first to comment!

As gold and silver give back Thursday’s gains, Dan Norcini declares that “hedge fund computers and their damnable algorithms have destroyed the integrity of the US futures markets.”  Pointing to “the extent of the daily price swings” this week in the above chart of the Continuous Commodity Index (CCI), he concludes that “Maybe we all should just go the hell to sleep and wake up in a year and see if the chart has actually gone anywhere besides up and down like a stinking yo-yo.”

And, from a serving at Jesse’s Café Américain:  “To say that these are fairly cynical traders’ markets, rather than anything tied to fundamental valuations, is an understatement.  The trading desks engage in heavy-handed bear raids, smacking the price of bullion and related markets like miners down lower, and then ride them slowly back up to trend.  Wash, rinse, repeat.”

Related Links:

Mineweb:  Gold to stay volatile as markets remain jittery; Gold rallies on week as QE3 prospects reignited and Eurozone remains in crisis

Kitco:  Survey participants look for higher gold prices next week

Reuters:  CME Group to cut silver margins for 2nd time since Feb; Singapore Mercantile Exchange to launch new gold, silver futures

SilverSeek/The Golden Truth:  JPMorgan silver manipulation; JPMorgan to world: Heads we win, tails you lose

P. Radomski:  The inter-market correlations may prove insightful for silver & gold investors

SafeHaven:  The difference between gold and silver

GoldSeek/Daily Reckoning:  Of debt, gold and Okun’s law; Buying gold on the dips

Wall St. Cheat Sheet:  Gold and silver wait patiently for more easing

Jim Sinclair:  Expect another $17 trillion of QE & war in gold

Business Insider:  PIMCO exec:  The Fed’s morphine drip will continue to drip drip drip into 2014

Bloomberg/WSJFewer investors rule out QE3, Citigroup survey shows; Fed watching gets trickier for investors

Forbes:  Keynesian “easy money” is nothing but currency devaluation

Telegraph/Washington PostOnly a matter of time before ECB is forced into massive QE; Europe now sees its financial crisis never really went away

CNBC:  Is the world’s biggest economy in danger of disintegrating?

USA Today:  U.S. tax refunds being used to pay for bankruptcy filings


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