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A Technical Review & Heads Up
By
James Sinclair

I need to keep tightly focused because the points that gold is hitting inter-day are simply too perfect to be perfect. The first break out above $324.50 took it almost to $332 inter-day. Now the ESF right from this morning's cash New York market sold the metal targeting a close below $324.50 as their goal. Are they reading these postings? Did I touch the rawest of all nerves by having the guts to publish who in fact stands at the top of the feeding chain in the management of world market for political purposes. Yes, political. Certainly not economic.

Was today's not too hidden death threat I received on my email, supposedly over the gold Dinar, truly a product of having simply revealed the facts of a gold development in Malaysia or something else. What a price to pay for service to my fellow man. Did I touch a raw nerve in my discussion of the Exchange Stabilization Fund and their activities in market quoting exact times of entry and exit, especially the market for the dollar & gold. Well they were at it again today in a manner only some one quite afraid of the market would adopt.

Well, if they are reading this material then take note. Your actions most certainly in gold today are so obvious that they reveal that you are scared stiff over the Asian and Islamic interest that continually buys everything you throw at them. You know this interest is not going to be scared out of the market so whose time and money are you wasting? Gold is not only going now to a new recover high but also above the old time high recorded in March 1980. In time your activities will be revealed as totally manipulative for more than political or society's economic purposes. You will not be able to lay off responsibility on a sitting Secretary of the Treasury, but rather you and others know that the ESF has taken on a life of its own for its own purposes.

Call it the "Gold Cartel" or "Central Banks" or large hedge fund interest but the most common presence in the gold and dollar market is the Exchange Stabilization Fund. The ESF is identified by many different names by observers but it is primarily and only the ESF. It all comes back to the ESF in the sense that they do the dirty work of the central banks from the perspective of one that favors golds. By using the commercial metals dealers as their stealth agents, the ESF has given impetus to the short side trading by these entities for the gold cartel's own accounts, now caught in a to the death financial fight with the price of gold over their short side spreads.

Today right at the US opening of the Comex, the Calvary having ridden into New York cash trading pounced on the Comex longs. Can't have the gold market saying bad things about the new appointment for Secretary of the Treasury certainly on the same day of the month that the Federal Reserve meets to discuss economic factors.

Note what occurred in the dollar at 9:12 this morning US time and three guess who SAVED THE DAY for the buck?

Please also note at 9:13 what started to happen in the cash market for gold and continued into the opening of the Comex with a goal of pushing gold under our $324.50 number. That presence was in the market both in the dollar and gold until 10.14 AM. Yet for all that muscle from that point on gold rose and the dollar fell.

We are very close to resolving this war into a new battleground of $348-$353. Yes, $324.50 is now the key number, not $330. The ESF will fight gold and the dollar all the way losing the daily battles and the war entirely. Certainly for those that only see the high, low and close of gold, it looks like an anti gold/pro dollar interest won but they did not. They didn't as they made their effect but instantly after their manipulative presence ended gold strengthen and the dollar weakened.

I still firmly feel that we are very close (tomorrow, as few days maybe) to a breakout of the handle of the three/four year teacup and a technical explosion to high gold prices.

Here is another very interesting editorial by Sinclair describing the mechanics of manipulation:

http://www.financialsense.com/metals/sinclair/editorials/2002/1206.htm

Here is a sample from the article:

...So that you can really understand markets, I am teaching you the real secrets of Wall Street that no book has ever offered to a community. Like the martial artist that gives away the secret of his discipline, I will have to be somewhat careful.

I have taught you, if you follow the archived editorials, how derivatives are the major means of money laundering and now I am teaching you how to run any market in the world.

Yes, the government is involved in all markets from equities to currencies to precious metals to industrial metals.

Yes, there is a limit to what they can accomplish. Yes, the markets were stabilized today. Call it manipulation or stabilization, but it is a reality that is as undeniable as the fact that the earth is round, not flat...