Gold Caught Between a Cliff and a Hard Sell
Anyone casually watching Gold over this past week would not believe that there was anything significant happening.Â But, as we all know appearances can be deceiving.Â Right now, the illusion is being foisted onto the market that the fair value in Gold is around $1725-1730 per ounce.Â Of course, this is patent nonsense but that is the level that a small group of hedge funds are defending with a stupendous amount of short-selling, aided and abetted by a failing equity market and mild margin-related selling as well as profit-taking in front of the expected increases to capital gains taxes that will go into effect in 2013.
But, the number of attacks made by the bulls above $1730 over the past 5 trading sessions only to be beaten down a few dollars to begin the process all over again have become too numerous to count, frankly.Â This behavior will not show up on the daily charts.Â One has to watch the hourly and 15-minute charts to see the active suppression at key times during the day to forestall bullish momentum by preventing the price to close above a certain price.
The hand-wringing over the so-called fiscal cliff is just that, hand-wringing and will amount, as always, to sound and fury signifying nothing.Â It is nothing more than a propaganda campaign to divorce you from both your reason and your money and create the illusion of instability when stability is the only process that is being maintained, though at great cost.Â At this point the financial media loses its collective mind if the equity markets drop 0.15% for a couple of days.
So, officially, gold is playing a game at $1725 per ounce while Silver continues to push against the cap at $32.70 per ounce.
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