Gold Continues to be Pressured by Commodity Weakness
The cover story at this point for the latest operation in the Gold market is commodity weakness today on weak employment data.Â Since silver is now trading wholly along with the commodity complex when it is convenient then gold is dragged along with it.Â In other words folks, there is no rhyme or reason to this other than pure central bank manipulation of the market to create a desired outcome.Â Gold has ceased trading along any investment thesis whatsoever other than the desire for central banks to crush it to keep everyone calm.
So, this is why one day it is down because there are no inflationary fears but the next day there is fear of savings accounts being confiscated so that should put a fire under the price, but no, it drops then.Â I have been watching this market for nearly 14 years now and I can honestly say that I have never seen anything like this.Â Even after Lehman Bros. there was weakness in Gold on liquidity issues and the immensely strong flight into the U.S. Dollar.Â The dollar has been weak this week.Â So, why is gold off $55 in 36 hours?
So, the markets continue to trade against all rational understanding of what makes them tick.Â The trade for the moment is short gold and short silver. Watch $1525 on a weekly closing basis in gold and $26 in Silver.Â At this point those are the levels that are being targeted and if they are breached we will see much, much lower prices.
Tom is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.
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