GOLD BREAKS CRITICAL SUPPORT AT PREVIOUS LOW!
We have had the support and resistance levels written on this chart for several months now. The “VERY WEAK BELOW 1523.90”has played out – in spades! It appears that the central bankers, who hate the competition of Gold to their precious fiat (paper only) currencies, Bear Raided the futures and derivative gold markets with heavy short sales of paper, in order to provoke stoploss orders to sell the price down further. When the December 2011 low was breeched, the price immediately dropped an additional 200 points. I would say that was effective. It was done on the Retrograde Station of Pluto, master of coercive power and things under the ground!
However, a strange thing happened on the way to the “Gold is Dead”funeral. People lined up all over the world to buy the actual physical gold at the lower prices, creating huge backlogs in the process. Although the shops will take your order and process it, delivery may come weeks later. Off the low day (April 16), Gold rallied 7 days out of the first eight. To prove its case, it must come back up above the downside break point, which is now the same price as the 50-Day Moving Average.
We’ll have to see if it can get above that double resistance point. Meantime, we would expect some attempt to retest the recent lows. Whether it drops to a higher low (stronger) or makes one more lower low (a bit weaker), we remain in the long term bullish camp as people of many countries are becoming more nervous about currency wars and devaluations and loss of buying power. And there is more talk of money in banks liable to confiscation if the bank loses their money in speculation. Whose idea was THAT?
In the meantime, why won’t they give Germany their gold NOW? Why won’t they give us citizens an audit of accountability? Because they are the Elite Beings and the peons should shut up and keep in their place? He who has the Gold makes the rules. It used to be that regular Americans could rise to become one who makes the rules. Has that been rescinded? If they take the guns too, we go from peons to slaves.
“…something will and must replace it. And because gold is the monetary medium par excellence-the monetary asset that people desire, that actually looks like money to people in every earthly culture, that cannot be materialized by wastrel governments, etc. –we believe that gold will somehow figure in the successor system. Ergo, we remain bullish on the value of gold in terms of paper.
‘Surging demand for gold from Dubai to Istanbul has pushed physical premiums in the region to levels not seen in years as the biggest price slump in three decades lures customers, according to MKS (Switzerland) SA.’ Bloomberg reported on Tuesday…
It was hard to secure physical gold in the wake of the April liquidation, and it remains difficult today. Not one mint or refiner had inventory enough to satisfy the clamor for coins and bars.”
Jim GRANT’s Interest Rate Observer May 3, 2013