Housekeeping: Good Morning.
“The reset is a process, not an event.”
Today
Topic : Shanghai Wins Again
Market Analysis:
Comex Capitulation
After dipping to just above $3,100 late last week, gold has mounted a sharp rebound. As of Tuesday evening, it was trading back at $3,300—reclaiming the same level where it ended April. There’s a reason for the recovery as cataloged here days prior.
In a note to Founders Monday morning we stated the following:
Three important things stand out in our reading of this analysis
They point out Comex lack of volumes implying China’s controls global price even more- Comex Deathwatch
China’s ETF buying has been massive, but their pukes/liquidations have been less so cyclically speaking.- Why?
China’s SFE/COMEX premium spread this time has remained sticky despite a historical tendency to disappear post gold allocations
Quote: Unless this changes, the (price) trend will continue (higher)
This morning we got confirmation of this analysis from none other than Goldman Sachs.
Goldman Makes The Same Point
According to a Goldman via a ZH premium post, China is back on the bid. Specifically, renewed onshore buying during the Chinese night session in Shanghai had reignited US demand. Open interest has jumped—up 3% for gold and 4% for silver—driven by the SHFE/COMEX spread narrowing towards the Shanghai price. The West Capitulates.
Goldman’s trader then points out something even more notable just as we did Monday 7:35 AM:
Onshore positioning has held firm at elevated levels, even as gold fell 8% from its highs. That resilience stands out, especially considering the typically momentum-driven nature of the domestic trading crowd.
This how you break an exchange franchise’s hold on pricing. by making the market resolve differences at your price. Comex is slowly capitulating and with it US hegemony in Gold pricing. As stated yesterday.. Part of this blame can be laid at the LBMA’s regulatory feet for not protecting western global wealth by zealously guarding its franchise. Gold is money and the west has much less of it now
Coming Soon:
Data on Deck:
WEDNESDAY, MAY 21 12:15 pm Richmond Fed President Tom Barkin and Fed Governor Michelle Bowman take part in Fed Listens event1
Related Posts:
Summary and Final Market Check…
MONDAY, MAY 198:45 amNew York Fed President John Williams speech8:45 amFed Vice Chair Philip Jefferson speech10:00 amU.S. leading economic indicatorsApril-0.9%-0.7%TUESDAY, MAY 209:00 amRichmond Fed President Tom Barkin speech9:30 amBoston Fed President Susan Collins participates in Fed Listens event1:00 pmSt. Louis Fed President Alberto Musalem speech5:00 pmFederal Reserve Governor Adriana Kugler speechWEDNESDAY, MAY 2112:15 pmRichmond Fed President Tom Barkin and Fed Governor Michelle Bowman take part in Fed Listens eventTHURSDAY, MAY 228:30 amInitial jobless claimsMay 17230,000229,0009:45 amS&P flash U.S. services PMIMay50.850.89:45 amS&P flash U.S. manufacturing PMIMay49.850.210:00 amExisting home salesApril4.12 million4.02 million2:00 pmNew York Fed President John Williams speechFRIDAY, MAY 239:35 amKansas City Fed President Jeff Schmid speech10:00 amNew home salesApril700,000724,00012:00 pmFederal Reserve Governor Lisa Cook speechSUNDAY, MAY 252:40 pmFederal Reserve Chair Jerome Powell commencement address
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