Gold prices lower in early trading Friday after Thursday’s sell-off. Gold last reported a.m. is $1143.40 and silver is $15.59. Both metals remain available below production costs.
Perpetual downbeat economic data that not even Washington can debunk, continues to push the Fed into a corner leaving it with only one option; print more money to keep the system from imploding.
More “positive” U.S. economic news came out today as the Commerce Department reports U.S. GDP growth declined to 1.5 percent in the third quarter from 3.9 percent in the second quarter. The term, gross domestic product, refers to the analysis of measuring the value of goods and services produced by the U.S. economy, minus the value of the goods and services used up in production.
Mega banks UBS and HSBC say they aren’t dismayed by yesterday’s drop in gold prices and believe more downside is going to be modest at best presenting great buying opportunities.
UBS say’s, “a rate hike this December would weigh on gold and given the recent gains in positioning could mean a deeper correction than would have been otherwise, as weak longs get washed out. We think this could present a good buying opportunity for physical buyers in China who need to stock up for the Lunar New Year festivities, albeit perhaps a bit early given that the holiday falls in the second half of February next year. We believe opportunistic investors who remain skeptical about the global macro environment should also view any weakness ahead as a chance to re-establish positions at better levels.”
Aren’t both of these banks being investigated for possible manipulation of gold and silver prices, you would ask. Of course they are so it’s important to take everything they say with at least 5 grains of salt instead of one.
Swiss watchdog WEKO stated on Sept. 28, 2015, said that it was launching an investigation into “possible collusion in the precious metals market by several major banks.
UBS, Julius Baer, Duetsche Bank, HSBC, Barclays, Morgan Stanley and Mitsui had prohibited competitive agreements in the trading of precious metals, WEKO stated.
UBS has been granted conditional leniency in the Swiss antitrust probe. In other words, “we’ll snitch on our partners if you’ll take it easy on us.” After all, there’s a lot more rigging left to do so let’s get this over with.
Mega banks have their bases covered as we see U.S. stock market corruption by “banker approved” high frequency traders on Wall Street, fraudulent trading at COMEX courtesy of JP Morgan, open manipulation of precious metals markets, and not to leave out, all other markets as well.
Big banks promote the attitude of “just shut up and trust big bankers.” Is it really any wonder the rich get richer and the poor get poorer? P.T. Barnum said, “a sucker is born every minute.” Do tell!
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