Big Market Rally, Ok.
A bad open on high volume and then the usual late day heroics on no volume. Great comeback market!:
COMEX Gold Expiration
Gold closed for the COMEX options expiration just under the line in the sand of $1200. Of course it went right past that after the close. Pure chance no doubt. Jesse has some thoughts:
Gold traded all day below 1200, at times rising to within fifty cents of the key strike price of 1200 where a large concentration of call options were clustered.
Well, since the call options at 1200 have expired worthless, why bother using the energy to continue to suppress the price?
Everything strikes me as funny tonight.
On a related note, this may not strike the gold bullion dealers as funny at all (via Zero Hedge):
Eric Sprott To Buy $235 Million In Gold, Or Over 6 Metric Tonnes, As Part Of PHYS Follow-On Offering
At a post-announcement per unit price of $11.40, this means Sprott will buy $235 million worth of gold in the open market. At today's gold price of $1,200 this translates into 195,833 troy ounces of gold to be acquired, or roughly 6 metric tonnes. Somehow, we don't think the LBMA will be too thrilled with this extraction of physical gold out of the controlled synthetic precious metal ponzi system.
That is funny indeed.
One more for a laugh, Marc Faber channels Economic Disconnect's long term view that low rates are now structural and needed, not a short term phenomena:
Marc Faber: Central Banks Will Not Tighten Rates Ever Again
The Central Banks will not tighten, but other forces may have a hand in this before the end.
Have a good night.