For gold bears it’s the worst possible time for Basel III.
A Severe Bear Squeeze In Gold
May 26 (King World News) – Alasdair Macleod out of London: Eric, today’s performance in gold and silver is stronger than it looks, and it comes on top of a $120 rise for gold from 31 March and a $4 rise for silver from the same time. A fall in prices was expected this week as gold’s active June contract is running off the board, and it should have taken silver down with it.
Yesterday was remarkable. Gold rose $18 while Comex open interest contracted by 20,718 contracts. This indicates a severe bear squeeze was in process, and it can only have been on the Swaps (bullion bank traders). The chart below shows their last known gross and net short exposures, adjusted for today’s gold price.
It’s the sharp rise in the gold price which has forced them to close, coupled with time running out for the Europeans ahead of the imposition of new Basel 3 rules for European banks at the end of June. I shall be watching to see if Friday’s COT figures show the number of Swaps recorded as short drops for the last figure of 26…
New interview from legend Doug Casey discussing gold, silver and
global chaos! To listen click here or on the image below.
In fundamentals, there is a growing feeling that price inflation is becoming the most important issue, and with the Fed and other central banks in denial gold is your best hedge. I expect interest rate setting committees to change their stance in the next month or so. If they don’t, they will lose control over markets, and my weekly article for Goldmoney, due to be released tomorrow PM EST, goes into the wider ramifications for markets.
Worst Possible Time For Basel III
The change in Basel 3 rules comes at the worst possible time for the authorities in their battle to keep control over the gold price. Removing hundreds of billions of paper supply for gold and silver is bound to lead to an increase in demand for physical metal at a time of developing hyperinflation.
That’s why prices refuse to dip as they usually do at the month end, and why this performance is stronger than it looks.
Also of importance…
Maple Gold Intersects 132 Metres of 1.58 g/t Gold in Nika Zone at Douay
Vancouver, British Columbia–(May 26, 2021) – Maple Gold Mines is pleased to report results from the second hole of the recently completed 10,270-metre winter drill campaign at the Douay Gold Project (“Douay” or the “Project”) in Quebec, Canada, which is held by a 50/50 joint venture (the “JV”) between the Company and Agnico Eagle Mines Limited.
- Drill hole DO-21-282X at the Nika Zone intersected 132 m of 1.58 g/t Au (from 185.5 m downhole), including 100.3 m of 1.76 g/t Au (from 185.5 m downhole) and 9.6 m of 5.49 g/t Au (from 247.6 m downhole). This result was within a broader envelope of mineralization that returned 195 m of 1.28 g/t Au (from 152 m downhole).
- DO-21-282X represents by far the best intercept drilled at the Nika Zone to date.
- Results are expected to expand existing resources at the Nika Zone, both in-pit in the area up-dip of hole DO-21-282X and below-pit as approximately 35% of the intersection is located below the 2019 RPA NI43-101 Resource Estimate (“RPA 2019”) conceptual pit floor.
Matthew Hornor, President and CEO of Maple Gold, stated: “We are thrilled with these results from the JV’s maiden drill campaign. Hole DO-21-282X returned one of the best grade-thickness intercepts ever encountered at Douay and is a testament to what a collaborative approach to exploration can uncover. We look forward to reporting more assays in the coming months from additional step-out and discovery drill holes completed this winter.”
Fred Speidel, VP Exploration of Maple Gold, added: “This 132-metre interval at Hole DO-21-282X, which contains nearly continuous gold mineralization, is substantially longer than the original 50-metre discovery hole we intersected at Nika in 2018. Furthermore, the zone remains open in multiple directions including up-dip at shallower depth; below the current conceptual pit floor; and further along trend both to the northwest and southeast, where similar structural blocks remain undrilled. This result supports our belief that multiple existing zones at Douay host more continuous mineralization than what has been discovered to date and reinforces the expansion potential we see across the Project and land package.” Maple Gold Mines, symbol MGM in Canada and MGMLF in the US.
To listen to Peter’s predictions for silver, gold, and other global markets CLICK HERE OR ON THE IMAGE BELOW.
***To listen to Alasdair Macleod discuss the end of the paper gold and silver markets, LBMA troubles, and Basel III rules impacting gold CLICK HERE OR ON THE IMAGE BELOW.
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