The $1650 level is one that Jim Sinclair identified a decade ago as a technically important one on the future history of the Gold bull market that was in its infancy at the time. Now, since Sinclair is one who is not one to shy away from laying his cards on the table and spitting in the eye of those who have power I am not at all surprised to see this level be tested over and over again during this period of de-leveraging of the Shadow Banking System.  One has to wonder just how much of this after a while is personal, if I’m honest.

But, as market analyst’s we are not supposed to look at things that way, even though we all know that events like that do happen in the markets.  Look at the now famous cat-fight between Bill Ackman and Carl Icahn last week on CNBC.  If you don’t think those two will be going mano y mano in the Herbalife pits then you don’t know markets nor the arrogance and hubris of those that think they move them.

And the central bankers know they have the power to move markets and everyday they do.  So, here we are again watching Gold bottom bounce after the New York equities close after being thrashed around as bulls continue to build a base in the $1650 region while the central planners think they are winning another battle in the war.  If you think the sell-off in gold has been brutal, look at the Silver price.  Most of its rally has been snuffed out in 4 trading days.

I still expect softness in Gold and Silver coming into Futures Expiration and the end of the month.  It is an important psychological tool to beat back investor sentiment — keep the technical bearish and non-confirmatory of other highly-correlated assets in order to confuse and sow doubt.

And the beat goes on.