There is NO other explanation for that sort of drop. Anyone watching the action saw gold rise with the euro, oil, and the DOW sinking … like it did late yesterday. You could hear it … talk about gold as a safe haven was busting out further as today’s price action confirmed yesterday’s … especially with the yield of our 10 yr T note dropping to a new historic low at 1.59% (which was only Jacks for Openers on the day.) The rising price of gold was standing out again. This clearly had to freak out The Gold Cartel and Behavioral Finance operators who threw another temper tantrum. What is going on here remains PATHETIC, and that includes those who comment on the market that will not deal with the way it is.

Can it get any more obvious?…

*While gold was rallying this morning, silver remained DOWN on the day. When we see a dichotomy like this, it is often a signal to The Gold Cartel’s allies that an attack on the price of gold is coming, as was the case early yesterday. Well, it happened AGAIN. A coincidence? Give me a break!

*A Gold Cartel mantra is to stifle gold/silver follow-through to the upside after a very constructive day like we had yesterday. Mission accomplished early and then late.

*A Gold Cartel mantra is to stifle budding excitement over gold. Mission Accomplished early and then late.

*The Gold Cartel usually attacks gold after a 1% up move, normally going sideways first. They didn’t wait for the sideways part, unless we count the early action this morning as just that. DOWN HARD it was. Mission accomplished.

Gold was trashed down to $1551 before it regained some traction back up. Silver, after making a high of $28.04 (dragged up slightly on the gold spike) was trashed down to $27.47 again before it regained some of its own traction. We are still in active delivery mode for the June contract and The Gold Cartel knew that a number of longs were still vulnerable to selling versus rolling over their long positions.

And gain traction they did. While today was nothing like yesterday, the comeback after a waterfall smash was. In addition, while the gold price was held below $1570 on its comeback rally after "the dump," silver managed to make new highs on the day, and led the charge back up.

But, in the end, the day had Gold Cartel written all over it. Gold was higher until the close, when it was sold off, even with the DOW up over 20 at one point. JP Morgan had silver in its crosshairs, as it was hit pretty good going into the close, losing all its hard earned gains of the day and then some.

The AM Fix was firm at $1567.50. The PM Fix was influenced by The Gold Cartel raid and dropped to $1558.

The change in the gold open interest was modest, up 254 contracts to 420,245. That tells me The Gold Cartel covered on the monster break, then put their trades back on again once gold rose 1% on the day. If some stale longs were flushed out yesterday, new ones took their place. The June open interest is down to 9175 contracts.

The silver open interest went up 2066 contracts to 116,027. Seems like JP Morgan and company wants silver to stay below $28 for the moment. Think how much money they have made over the years picking up the spec longs because of their orchestration. Today they could have been pocketing 40 to 50 cents easily on the gold raid. They had to be selling early when gold popped, based on the price action.

To pick up on yesterday’s theme that all is not well in Europe and in the US and that unwellness could easily lead to some sort of chaos. The financial news in the US continues to deteriorate, led by this clunker… 

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