GOLDBUGS AMEX Goldbugs Index (GOLD)

[basserdan]

>>>I think the charts showed gold needed to correct and people took advantage of it with available vehicles.<<<

G'morning 4G,
I don't know if you ever read Ted Butler's essays, but I think this break may be predicated upon something considerably more sinister than a technical correction...

Submitted for your consideration:

The Bank Participation Report for positions as of February 3, indicates that three or fewer U.S. banks hold a record short position in COMEX gold futures of 111,190 contracts (over 11 million oz). an increase of 28,690 contracts from the January report. The previous record short position by U.S. banks was 86,398 contracts in the August Bank Participation Report.

http://www.cftc.gov/marketreports/bankparticipation/index.htm

In other words, the current short position held by two or three U.S. banks is almost 30% greater than the previous record. After the previous record August short position was reported, gold prices fell almost $200 over the next two months. Will that happen again? I don’t know. What I do know is that if gold prices do suffer a sharp decline, it will only be because this manipulation by two or three U.S. banks was successful.

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