Gold Routs the Shorts, Next Stop $1500

By Tom Luongo in Gold and Oil News | April 25, 2013 19:53 | Tags: , , , , ,

I said yesterday that futures expiration was holding Silver back from breaking above $24.  That turned out to be the exact right call.  Gold was held in check below $1450 as well, $1435 in fact — the 200 week MA.  That level has fallen and the market is currently trading in run-away fashion heading towards $1480 by the close on the Globex this afternoon.  A huge roadblock was put up into the COMEX close to beat gold back below $1460 and it has failed.   The ferocity of the buying is so much stronger than anyone expected after such a wash-out that we have a very good chance of seeing $1500 by tomorrow.

A close above last week’s high of $1494 will create a single bar reversal signal that should bring even more momentum buying and short-covering into the gold pits.  At this point the bulls know the emperor has no clothes and that the shorts are naked.  The exchanges and ETFs are being drained of their inventory, the mints are all running out of supply and major investors have had their allocated assets confiscated from them by the bullion banks.   And what ABN Amro did was nothing short of confiscation.

We will see cash settlements on the COMEX this month.  There will be no reporting done on it.  The process will accelerate into the summer and we will see gold and silver both continue to rise into this mess.  It’s looking more and more like the sovereigns on the other side of this trade are going to punish the architects of this gift in price all the way back into the $1600′s as a start.

Comments are closed.

Currency Articles - Dec 2, 2015 11:35 - 0 Comments

GBP and EURO Still Weak as Monetary Policy Continues To Dominate

More In Currency Articles

Gold and Oil News - Jan 12, 2017 12:05 - 0 Comments

Gold Price Shoots Higher As Trump Offers No Clarity

More In Gold and Oil News

Shares and Markets - Feb 20, 2017 16:03 - 0 Comments

Life Insurance Sector Continues It’s Strong Start To 2017

More In Shares and Markets