For Ackerman, suppression of the gold price is now a given


Copyright 2003,

Excerpts from Midas commentary for Friday,
August 22, 2003

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* * *

By Bill Murphy

Gold $362.60, up $2.10
Silver $4.99, up 6 cents

One of the most important gold days in years!

Gold began to smell differently last evening. After yesterday's
drubbing, gold began to rise in Asia, $2 at one point. That sort
of action is highly unusual. Most every other time I can
remember, gold would trade lower in Asia after an obvious
cabal trashing that proceeded one of their capping drills.

Nevertheless, the Cartel's Comex gold raid was right on
schedule. As we came into the New York trading period,
gold weakened noticeably as the dollar was soaring. The
dollar was on its way to 99.40 and the euro sank all the way
to 108.33. Meanwhile, news from Intel saying their business
looked better sent the DOG, S&P, and DOW flying.

With the Comex specs massively long, there never was a
better setup for the crooks to tank gold and flush out the
huge fund long positions. The Gold Cartel was licking their
chops, immediately taking gold down $2.50 and violating
pivotal technical support at $358.

All of a sudden, gold STOPPED going down and began to
drift back up, even with the stock market and dollar still
roaring ahead. Back and back it came to unchanged,
then rising further until it was again staring at the
downtrend line of the massive, very bullish wedge

Why was a piddly $2 up day in gold so significant?

* Every single time over the last five years, and after a
good price runup/large spec build-up, the Gold Cartel
reversed gold and succeeded in turning gold down and
flushing out the specs. Today was the exception, made
more important because of the early surge in the dollar
and U.S. stock market. If there ever was a time for the
cabal forces to execute their gold market raid, it was today.
They FAILED miserably.

* Gold has now closed 10 days in a row over its pivotal
$323 Dollar Index Value of Gold price. As you know from
years of Midas commentary, the gold market is about the
physical market and the Gold Cartel. The work of GATA's
Mike Bolser shows $323 was the cabal's defense point for
gold in all currencies. The fact gold is moving away from
that level suggests the cabal is losing control of their
rigging operations. This gradual loss of control is the
reason gold is moving up, even as the dollar soars.
Most gold analysts seem confused. As oft-repeated
here, those who do not deal with the gold rigging issue
do not understand the gold market. In the end, most of
their analyses will prove inadequate.

* The work of Houston's Dan Norcini reveals that $335
DIVG is Custer's Last Stand for The Gold Cartel. Once
gold takes out that level, it will indicate they have
completely lost control of their manipulation. Yesterday
gold closed right below the $335 level. The Gold Cartel
needed to bury gold today to maintain confidence in the
manipulation and control of the gold price. They failed.

* The DIVG is based on the London PM Gold Fix. As
gold was trashed early in the day, the fix came in at
$358.75, or more than $4 lower than the previous day.
Technically, the DIVG fell to $331.95 due to the low fix.
However, if one uses the Comex close, it would have
about taken out $335 based on the higher dollar. If gold
takes out its downtrend line on Monday and the dollar
doesn't collapse, the DIVG gold price will blow through
its last resistance at $335. It will be nail in the coffin for
the bad guys. Gold should rocket!

* Gold's holding so steady the past week in the face of
enormous dollar strength is additional proof there IS a
"paradigm shift" in investor attitude toward gold. As the
U.S. position in Iraq deteriorates and U.S. financial markets
begin their inevitable swoon, this "paradigm shift" will
become more pronounced.

* Hannibal Lecter (Goldman Sachs) sold the close,
knocking gold down over $1 in the last minute. Same
pathetic maneuver they pull over and over. It tells us the
Gold Cartel has not capitulated yet. However, they must
be petrified of the abnormal strength in the gold price.
It is extraordinary and they know it. Any veteran trader
can see it.

* We still have that breakaway gap due with gold coming
in $3 higher and moving up from there, quickly taking out
$370. I thought we might see $370 by today. The cabal's
attack on Thursday delayed the event. My guess is gold
will take it out next week. Soon we should see the
long-awaited commercial signal failure. Comex open
interest rose another 1084 contracts on the selloff to
236,885. The big specs ADDED to their positions
yesterday and won the day today. The onus to keep
gold from exploding has shifted back to the Gold Cartel.
The longs proved their mettle on the Comex.

* Gold is right below its explosive breakaway point. It has
reached this level even though the stock market and dollar
have rallied for many months. What do you think the price
of gold is going to do when the way-overvalued stock
market is hit and the dollar dives?

Gold chart:

The Commitment of Traders report revealed the following as
of last Tuesday:

* The commercials reduced their longs by 773 contracts
and increased their shorts by 23,195.

* The large specs increased their longs by 19,643 and
reduced their shorts by 3,840.

* The small spec position was little changed.

These numbers were expected and don't really mean that
much after today's defeat of the cabal and other commercials.
The smart big money in the world is taking on the crooked
Gold Cartel. They believe we have come to the point at which
the price riggers can be beaten, powerful as they are.

I mentioned yesterday gold had to go up today to avoid a
technical liquidation, induced by cabal forces, and maintain
its short-term constructive look. Since it did so under very
tough circumstances, we ought to move sharply higher next
week. The gold fundamentals remain a "10+," the Arabs are
buying in size, as are the Indians and others, and some
nervous large shorts must be close to running for the hills.
But, as we know, we must never count out the most significant
financial institutions in the world. If they can find enough
physical gold to take down gold next week, they will. My bet
is they come up short and go down to defeat.

Silver held $4.90 to the penny and then turned up quickly,
even with gold under severe pressure. Silver ought to roar in
the near future.

The CRB rose again, climbing .76 to 241.11. General
commodity commentary by the pundits is turning very
constructive. Commodity prices are rising with the dollar
moving higher. They ought to really move when the dollar


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