From Trader Dan’s Beehive Forum Posted by BobbyLivesMore
Norcini is a technical analyst, and it’s easy to understand why technical analysts do not want to address surreptitious trading and market intervention by central banks — why technical analysts loathe the very subject of gold market manipulation. For such trading and intervention by central banks and their agents would mean that there really is no market to analyze, that technical analysis in such circumstances is a delusion.
Of course no one can be expected to admit cheerfully that his life’s work has become obsolete. As a newspaper editor your secretary/treasurer feels this keenly, having spent most of his life in an occupation dependent on literacy and civic engagement, both of which are nearing obsolescence in the public mind in the United States.
But to call people “nitwits,” as Norcini does, for complaining about something as comprehensively documented as the destruction of free markets seems awfully presumptuous. If GATA ever persuades enough people of this market rigging and thereby helps to end it, restoring free markets, maybe someday technical analysis will become useful again.
thanks for providing that for us Bobby…
I actually like Chris Powell; he is a decent guy.
The problem I have with the GATA gang is not personal but their continued persistence in clinging to their theory of gold manipulation when the actual market analysis discredits it.
I used to write for these guys a while back and actually tried to be a forceful proponent of the gold price manipulation theory.
What was different back then and why I continue to marvel at their blockheaded claims that these “flash crashes” as they term sharp moves lower in gold, are the result of bullion bank/gold cartel orchestrated takedowns, is one huge factor. THE SOARING DOLLAR. Back when I was an advocate for GATA the US Dollar was sinking into the toilet and threatening the 72 level on the USDX chart. I believed then and still believe now,, that we did indeed have an orchestrated attempt by the Fed using the bullion banks as proxies to try to stem the rise in the price of gold because gold competes directly with the US Dollar. A soaring gold price alongside of a collapsing dollar signaled a loss of confidence in the Dollar, something that the Fed did not want.
However, with the Dollar rallying like it has been, there was no need to attack the gold price. Speculators simply were not interested in holding gold due to the costs associated with owning it in size. IF anything, the strong Dollar signaled the desire of global investors to own it ( the Dollar).
Then you throw in the fact that the commodity world was sinking, GLD outflows were surging higher as total reported holdings collapsed and the TIPs spread was falling… all of these signaled DEFLATION was the issue NOT A COLLAPSING DOLLAR as GATA was predicting. Eventually the truth has caught up with the gold conspiracy crowd in regards to the Dollar. Sadly they have not changed their tune.
I made no secret of the fact that something else was going to be needed to spark a sustained rally in the gold price because of the points mentioned above ((deflation, falling commodity prices, strong Dollar, soaring stock markets, weak TIPS spread, etc.)
That is occurring now as a backdrop as gold now resumes trading as a currency. That is evidence by its rising in terms of other currency majors.
We are also seeing renewed interest in the metal by speculators as evidenced by the inflows in GLD as well.
So what do we now have? A rising gold price.That is exactly what one would expect to see and it is exactly what we are now getting. The problem with GATA is that THEY EXPECT GOLD TO GO HIGHER ALL THE TIME REGARDLESS of fundamental factors and investor sentiment. That is why I used the term, “nitwits”.
For GATA , gold is always in a bull market, or at least it should be. That simplistic view simply caries no credibility with many of us who actually try to understand market/investor sentiment and trade/invest accordingly.
Maybe one day they will get it over there. Like I said, I like both Chris and Bill personally. It is too bad that they cannot be objective but then again, their organization needs to keep the gold conspiracy alive all the time or their reason for its existence would be obsolete .