Today was a special day in that we saw nearly two full cycles of gold attempting to break through $1400.  The first happened in Asia last night.  The second happened during the COMEX hours in New York this morning.  Both times the selling came in strong to push gold back down, first to $1375 and then to $1380 where it stayed for the rest of the day.  I know it’s late May and we’re into the summer re-run season for network television — just saying that dates me terribly — but this kind of deja vu market action is getting really tiresome.

Cue the jumping the shark reference.

But, with the Yen getting pummeled back over Â¥102 and bonds having their single worst day in nearly two years, it was no surprise that gold could not mount a successful assault on the $1400 level.  That’s okay, I’m sure traders in China, India, Thailand and Russia are very happy this afternoon as even more tonnage leaks away from western vaults to theirs.

What I find rich is the idea that the U.S. is going to stop the flow of gold into Iran to further attempt to destroy what’s left of the country’s monetary economy while its officials perform every possible act of debasement imaginable to hand over on great big trucks tons of gold to those that back Iran in the geopoliticalGrand Guinol.

Still, as we approach the end of May we have to expect that the price of gold and silver will be held down as low as possible to keep the number of contracts holders ready to stand for delivery to a minimum.