The End Game Train Conductor Says All Aboard

If you think this is wild, just wait until the next round of money printing starts.

Gold Open Interest Stable, Price Not So Much

I wrote this in the morning Israel time when the gold price was "only" $3,300. Now it's above $3,350 and rising. I'm headed to the Temple Mount with my family tomorrow for Pesach morning services. Not the wall, not a fan of walls, we're going on top. If you want me to relay any prayers send me an email and I'll put them in.

Anyway, open interest in gold futures is up only 3,247 contracts since yesterday, yet the price is up over $100 today. The bullion banks that sell futures contracts short are obviously reluctant to sell more and are asking for big price moves in order to sell those contracts. If the bullion banks refuse to increase their short positions, the price will have to move "bigfully" (as is already happening) in order to keep liquidity flowing.

First chart for you today is the gold to CRB commodity index. It shows gold's value relative to other consumable commodities. If we cross out the 2020 lockdowns that pushed oil down to negative $35 a barrel because of wonderful genius disease-stopping superheroes from heaven who saved us all from certain Covid death, then we're at resistance now. If we can break through, that would suggest either a trend change since 2008 opening up possibly to the End Game, or we're in another global mirror funhouse of lockdown magnitude, and for all I know the China tariffs could be that.

Moving to the basis trade,