Make no mistake about it, yesterday’s snafu with the March FOMC minutes was no honest mistake.  The release was perfectly timed to give maximum benefit to the short side of the gold market giving their quislings yet another opportunity to cover at lower prices.  Today we saw steady, constructive buying until the COMEX close where the price was reset again on low volume to allow more short-covering once Sydney opened.  As of this writing gold is off its worst lows of the day pushing back towards $1563 per ounce.  For those bulls frustrated that things are not improving fast enough consider just how much garbage has been thrown at gold since late January and yet still the price refuses to break below long term support.

Yes, it keeps testing that support and the bears are not going to let up until the bulls show some real chutzpah and take the price through strong resistance to get the momentum players to the sidelines.  Until that happens we will continue to see bottom bouncing and drive-by take downs have maximal effect.  The truth is that the attacks on gold have been relentless in a way that really does scream desperation.  The arguments get more tortured by the day but simply put what is happening is simply a big head game being played by the Fed for your gold position.

It’s not about faith but logic.  Who stands to lose the most with a rising gold price? So, who’s on the other side of the trade?  Trading with them is the smart play until it isn’t.  Don’t be that guy that hangs on one day too long.