gold flying, page-7

Are shares in such companies as AAR , FML , MAR (Ag) , preempting physicals long awaited move to U$700 plus as per MIDAS's June 1st commentary.

GO GATA!!!

What a nice way to start off the month. Meanwhile, this is a time to question coincidences …
1. The dramatic drop of 55, 132 contracts in the gold open interest on Wednesday.

2. Yesterday’s OI fell another 5634 contracts, bringing the new number down to 364,922 … meaning The Gold Cartel and friends were covering massively as the predictable funds SOLD THE BOTTOM.

3. JP Morgan Chase picks up the cheap gold at this bottom, taking in more than 11,000 contracts for delivery. Then this announcement a day later …

PRESS RELEASE
1 June 2007 - The ECB’s gold sales
Over the past two months, the European Central Bank (ECB) has conducted gold sales amounting to 37 tons of gold.

These sales are in full conformity with the Central Banks’ Gold Agreement, dated 27 September 2004, of which the ECB is a signatory.

Together with the gold sales of 23 tons, completed on 30 November 2006, the ECB has thus sold 60 tons of gold in the third year of the agreement, which started on 27 September 2006 and ends on 26 September 2007.

It is not the ECB’s intention to sell more gold in the current year of the agreement.

–END-

All of that was one big coincidence… riiiiiiiight!

So AFTER The Gold Cartel does its thing to suppress the price and blows numerous specs out of the water, gold turns right around and starts going right back up.

What does all this mean?

Most importantly it reinforces what the GATA camp has to say about the gold market … in that it is all about The Gold Cartel, other central bank selling, and the physical market. Other factors, such as a weaker dollar, contribute to the demand for gold, but are a distant second to why the price of gold is going to well above $2,000 per ounce.