If you look at golds journey after last weeks poor economic numbers it was capped from rising too much. Rising on small volumes usually would indicate tight supply, central banks are buying and demand is healthy. My obviously delusional take on it is buyers want volume but cant get it without driving the price higher. As the price rises it forces margin calls on short covering sending the price in a exponential uptrend. I estimated 4.5 million ounces on Thursdays fall in 30 mins and about 6.5 million ounces on Fridays 45 minute falls. These are significant volumes. Obviously traders using stops are getting smoked, banksters and the like driving into stops to create artificial volume spikes. It really is going to be interesting to see how much of the contracts end up in delivery as this will be very revealing. With a lot of producers unable to maintain reserves or profitability at levels lower than this the basic fundamentals of supply and demand will start to take effect. A dangerous game is being played out of pass the parcel at the moment, if gold heads towards $1000us supply will take a hit, if people wake up and demand physical delivery in volume where will it come from. That gold that has been leased then released and released again will need to be found from somewhere. At or near peak production now with falling reserves at some point the manipulation will have to unravel. I think the supply side is drying up and the only way they can get there hands on the gold they need is by scarring people into selling. Ever since Germany asked for its gold back ect the funny business has increased. Maybe one day we will find out. Can't audit the fed, can't audit the gold, can't justify the employment figures, real estate figures or the mortgage figures. U.S. Dept to gdp isn't that far behind Greece. The more gold drops now the steeper the climb later. They have lost control and they know it, without QE 4 the Stockmarket could have a 50% correction quite easily. The algobots will get itchy trigger fingers and overrun down, the retirees will lose the lot and the rich will buy cheap assets just like 08.
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