Gold Survives Another Vicious Attack Post Draghi Comments
You almost have to feel bad for whatever hedge fund(s) is trying to piggy-back on the ESF and the Fed’s capping of the gold price at this point.Â Â The take down of gold — this seems to be something I’m writing on a daily basis now — started at 9:15 this morning and took gold down to $1665 before the bull stood their ground and forced them to cover.Â Â Normally that would be the end of the day.Â Gold would then be capped at or slightly above the high of the European session and held there for the rest of the day.Â Well, that lasted for 2 hours before the selling began again.
ECB President Mario Draghi spoke this morning and said nothing of consequence but it was enough to send the Euro tumbling back below $1.34 on fresh fears that the European core was in as much trouble as the periphery.Â It’s nonsense, but it makes for good headlines in the U.S.Â It was nothing more than a little reset of the price before the ECB policy meeting tomorrow morning where more of the same nothing will be said but the HFT mo-mo monkeys will be out in force trying to scare people out of their positions.
If things in Spain get bad and Draghi is forced to actually use the OMT what do you think Germany will want in collateral for the loans?Â That’s right, the same thing that was extracted from Greece, itsÂ gold.Â And with the ECB balance sheet marking its gold to market do you really see that as being net debasing for the Euro?
Neither did I.Â It will, however, spark a massive rally in Gold to pay for it all.
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