http://www.livecharts.co.uk/livewire/2013/05/follow-through-selli...

http://www.livecharts.co.uk/livewire/2013/05/follow-through-selling-takes-gold-back-to-1420/

The fight in the gold pits it continuing unabated. After the latest round of Fed jawboning about ‘tapering off’ quantitative easing courtesy of Wall Street Journal mouthpiece John Hilsenrath, hedge funds desperately short with naked positions on the COMEX and in London are continuing to press their advantage attempting to push price to zero as their momentum algorithms attempt to slice the very last bit of meat off this pig.

And as y0u know in the market pigs get slaughtered. When more than 40 tons of physical gold are taken off the LBMA on Friday alone according to trader Andrew Maguire, you know that attempts to keep pushing this market much lower will be ultimately fruitless. Gold is going much, much higher or the Central Banks are bound and determined to destroy the global monetary system and commit hari kiri.

For gold investors at this point continue to look at these pullbacks as massive buying opportunities as nothing fundamentally has changed for gold, if anything things have accelerated in gold’s favor. The interplay of the Dollar, the Euro and the Yen are a distraction from what is really going on, which is that the Yuan and other Asian currencies — the Thai Baht, the Singapore Dollar, the Malaysian Ringgit– are all continuing to rise versus them and that is the signal that the inflation is truly occurring which will eventually take gold much higher. This will also drag silver along as well as oil, copper and natural gas.