THEY'RE TOO INCOMPETENT TO BE CONSPIRATORS
nypostonline.com
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Here's the conspiracy thesis: The major gold-dealing houses, in particular Goldman Sachs, have huge short positions in gold. That is, they would profit from a decline in the gold price. Goldman, the story goes, has close, high-level contacts in both the British and U.S. governments, and is using these contacts to ensure the gold price is kept weak. The story continues that Goldman is net short about 1,000 metric tonnes of gold, which is between $8 billion to $9 billion. But I don't believe it.
Just before the Bank of England announcement, the chart freaks, or, if you prefer, technical analysts, were pointing with excitement to a "breakout" of the gold price and the prices of gold shares. Gold has been in a slump for years - decades, really - and the goldbugs hoped that the "basing pattern," the politically correct goldbug term, had finally been broken. But, instead of a breakout, the gold longs were at the receiving end of multiple cruise missile impacts (aka Realman visit). The closing price went from $289 May 6 to $282 May 7.
That was the end of the technical rally.
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