The "Silent Panic" of the Banks Revealed – Open Interest Collapsed While the gold explodes!

[Igor Pereira]

Traders, I gave the benefit of the doubt for three years. I've analyzed every flash Crash as a tactical maneuver. But the graph that just crossed my desk confirms what we suspected: This isn't a maneuver anymore. It's an escape.

By Igor Pereira Financial Market Analyst

Banks are covering their sold positions (Short Covering)? The answer is in the data: YES. And they're doing it in panic helping each other to avoid losing and bankrupting.

The future market is being abandoned. There are no new speculators coming in. What we're seeing is the biggest hot potato transfer in modern financial history. Below, the analysis of the divergence that proves that something "very, very big" is coming.

In a healthy market (Bull Market), the price rises accompanied by increased Open Interest (new contracts being created, new money entering). What we see now is the exact opposite, a very rare anomaly.

• The Chart: The yellow line (Price of Gold/GLD) is parabolic, breaking historical maxims. But look at the Red and Blue lines.

• Collapse: Open Interest not only stopped rising; it He fell for levels seen only before the rally begins.

• The translation: The price is not rising because speculators are buying. The price is rising because Banks are desperate to close their positions.. They're resuming their own contracts at any price to get off the market.

"There are no speculators bought in this market."

• Empty: If there was retail euphoria or institutional speculators coming in now, Open Interest would be exploding up along with the price. The fact that it's falling shows that the Tourists have already left or been expelled.

• Only Sharks left: The market is now made up only of the big banks negotiating their toxic positions. They are trying to pass the "hot potato" before the music stops (before the physical delivery default occurs).

• Dynamics: They've manipulated the sudden falls in recent years not to profit, but to create enough liquidity to reduce your total exposure. They're cleaning the house before the event.

The disconnection between paper price and market share suggests a systemic liquidity event.

• Preparation: Why would a bank zero its positions sold in gold (even with loss, causing the price to rise)? Because they know the next move won't be $100 or $200, but much more.

• The Counterparty Risk: They are abandoning the future exchange market (future paper) because they know that at the time of the break, contracts will be worthless. They would rather pay dearly now to get out of the contract than to owe physical metal that does not exist (as we have seen with the 432 million ounces required for March).

The "Invisible Hand" stopped pushing the price down and started using both hands to hold the exit door open to itself.

My Vision: The absence of speculators (Open Interest Bass) during a historical rally is the most dangerous and lofty signal possible.

1. The Final Clamp: When the last bank finishes covering its sold position, there will be no more No one selling. The price will enter an offer vacuum (Bidless Market on the contrary).

2. The Council: Don't sell your physique. The banks are desperate to get off paper. If they don't want the part, why would you want it?

---

Premium access: Open Interest Collapse Timer

At Premium, we're monitoring the daily rate of contract destruction. We have an estimated date for when Open Interest will reach the critical Zero Level, when the future market can stop mathematically.

Ensure your place in the elite market: "> CLICK HERE TO ACCESS THE PICTURE