These are the kind of corrections that are helped and pushed. As I warned and described before yesterday’s small Comex session (click here), the upside momentum was fading as normal action for an bull run; today’s dive down going into and through the London P.M. fix price is classic timing for the targeting of a tape painting move. 

TND Market Brief:  Eric Dubin

The London P.M. fix occurs at 15:00 GMT (10:00 a.m., EST) and remains the most important benchmark price in the world and it is regularly targeted for tape paining because it has a bigger “bang for the buck” impact in terms of shaping psychology because the fix price gets fed into end of day charts, etc., and quote feeds and a great many people that bother to pay attention to precious metals only bother to watch that closing price – or the closing price on Comex. Targeting the London P.M. fix is analogous to creating an alternative universe for a percentage of those bothering to pay attention. Many contract settlement for the movement of real metal are also tied to the same fix price – another reason why the fix is manipulated.



Note. the term P.M. Fix and A.M. Fix should not be interpreted as indicating manipulation in and of itself. The ‘fixing’ price is just a term speaking to the point in the day when the traditional system of setting the settlement price is established. For over a 100 years, the bullion bankers in London would call around and find out what the status of the market was and they’d establish the fixing price – it was literally done on the phone for decades. You can google the image archive on google and find funny photos of five men with phones.

Bottom-line: we were ripe and ready for an attack/correction and that is all this gold action was. The cartel will not break the back of the precious metals back. Fundamental catalysts and actual news events and headlines that come and play during days like this and after a sustained move like what gold has established since last week usually are often catalysts and excuses for the cartel to help push the downside action so as to inspire real profit taking.  We currently see the strongest fundamental conditions for higher gold prices in years.  2017 will be an explosive year to the upside.  Silliness like today’s tape painting just comes with the territory.

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Mr. Dubin is the Managing Editor of He has 25 years of experience as an independent buyside securities and global macro analyst. He has well over a decade of experience as a financial journalist, editor and political analyst. He’s primarily an autodidact, but his formal education includes degrees in economics, international relations and MBA. He welcomes feedback on his articles and will make an effort to respond to comments. Email Eric by sending to “Eric” and then He can also be “followed” on Facebook:

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