Friday, August 29, 2014

Sadly, The War on Gold and Silver Continues

The good news is that these tests show that support around $1,300 is solid, which is confirmed by the strong demand for physical metal that showed up on these price dips. There is a lot of cash patiently waiting on the sidelines to scoop up physical metal whenever the price drops.
Now for the bad news. Both dips were the result of price manipulation by the central planners and their allies who pile on the short side by selling as much paper gold and paper silver as they need to stop precious metal prices from climbing. So sadly the war on gold and silver continues.

Consequently, we need to be cautious about the rest of this week. While the Comex options expired today without the central planners and their allies taking gold below $1,300, the more important over-the-counter options expire over the next couple of days. Then on Wednesday afternoon gross domestic product for the second quarter will be reported. Also, the unemployment report will be released on Friday. So there is a flurry of economic reporting this week.

As if that were not enough, there also is the Federal Reserve's Federal Open Market Committee meeting this week. The consensus is that its announcement -- to be made Wednesday afternoon -- will say that the Fed will continue tapering, meaning that it is still slowing down the printing press.

- James Turk via a recent King World News interview