I think we just witnessed a gold market manuever designed to kick the bulls in the balls one more time just to let everybody know who is in charge. All of these expose's, the derailing of the IMF gold, etc irritated the bullion banks, brokers, and everyone else short on gold and they decided to react. What appeared to be a change in sentiment hallmarked by high lease rates, GS buying bullions, and the large amounts of december calls created euphoria for the beaten up bulls. GATA could not turn out e mails hallowing an imminent rise in the price of gold fast enough. The controllers played it beautiful. Gold rose to resistance at 262.00. When little or no buying appeared, they pulled the plug and another illfated rally goes down the drain. While the bulls nurse their gored balls, the bears are drinking champagne and eating caviar and rellishing how easy it is. Again the only ones not in the picture, the producers. August is vacation time and what is more important than racing their speed boats around a lake driving up another commodity: oil.
But alas, balls heal relatively quickly, and the bulls will be on the prowl as soon as gold stops diving and goes up .08.
Ken |
