Testimony from FOMC Chairman Ben Bernanke on Tuesday sparked an lot of volatility across a number of markets, most notably the Nikkei which dropped 7.3% the following evening, causing equity markets the world over to stall in their pursuit of Dot.com-like P/E’s.  Gold began the week following through with Friday’s weakness as margin-related selling forced players out on Sunday evening causing a re-test of the $1340 area.   After that we saw daily attempts to break $1400 be rebuffed by the Fed and their mo mo monkey quislings on the COMEX, all the while watching both gold and silver leak out the back door causing even faster liquidation of stores at the GLD ETF.

Don’t kid yourselves, the redemptions from GLD are most definitely robbing Peter to pay Paul and keep JP Morgan from being added to the list of bullion banks materially defaulting on their physical gold obligations, like ABN Amro and other Swiss banks that are still being protected from having their thievery made public.

So, with all of that gold actually survived a Friday without there being a significant rout.  Yes, there was intraday weakness but no margin-inducing, sphincter-tightening waterfall.  For the week Gold was up just shy of $25 closing at $1385 and silver was able to close back over $22 at $22.34.

Next week is another one of those weekly/monthly Friday closes that will be fought tooth and nail to paint in the most bearish way imaginable.  You have been warned.