Gold Surivives Assault — Ends Week at $1705
Another bearish week for Gold as the bears clearly have the upper hand in this market. The Bulls keep digging in their heels at important support levels but the waves of selling hitting the market during the European and U.S. market hours is too much to allow the price to rise significantly. The selling starts either just before or just after the European opening at 3am EST and continues until the price hits the bottom of the range, then the short-covering begins allowing the price to rise slightly and steadily until noon.
For this week, given how vicious the attacks were holding above the $1675 level was a testament to how strong the physical demand is and how tight the market is becoming. And it was no surprise really to see Goldman Sachs come out and declare the Gold bull market to be over. Either Goldman knows that the Fed is going to allow the banking system to be flushed completely (which is the only thing that can do as they suggest) or they are talking their book (more likely) trying to get silly-headed longs to give up their positions to be scooped up into the ravenous maw of the sociopaths running Wall St.
At this point what should be counted on is that the Fed will print and when they do it will be with vigor. You can be sure Goldman’s traders will be out of harm’s way before it happens. For the bullish turn around to begin, and TIPS yields are screaming that Gold should be rising, bulls will have to push above this week’s high at $1725 next. When this next rally begins, it will begin, as always, with anomalous behavior in Asian trading spilling over into the E.U. and N.Y. sessions.