The Gartman Letter, written early this morning when world gold was some $30 above today’s NY close and $15 above yesterday’s, expressed confidence that CB selling would block a recovery:
“We do not expect this rally to last long, and suspect that there shall be material selling in spot gold between $875-881. We look for the legacy central banks to ramp up their gold sales on this strength, for they've got gold to sell en masse if they wish to meet the total they are allowed to sell under the Washington Agreement…” With gold coming under heavy pressure again at the fixes – AM $863.50, PM $853 – it is clear a large seller of physical was again active. One might ask why an owner of physical would choose May Day, with China, Hong Kong, India and most of Europe closed, to batter the gold market. One might further ask, why the Washington Agreement CBs, who signed up supposedly to bring order to the gold market, would behave in such a way. The answers to these questions are the key to understanding gold. |
