Wednesday was the final day of the July futures trading month, as it always is. And the current rally in gold (AMEX:PHYS) began that day with the $1600 level being breached again. When the Federal Reserve and their flying morons will quit defending this quite indefensible price for the precious metal is beyond me, frankly. But because there are still so many out there that really do believe in credit deflation in a world populated solely by Keynesian/Monetarist economists they are willing to assist the Fed in doing the heavy pushing on the price of gold at opportune times.
One of those times was Friday morning on the COMEX (NYSE:CME) open. Timed perfectly with the U.S. GDP statistics, which were awful at 1.5%, was yet another high volume raid on the price of gold and silver (AMEX:PSLV) knocking it back from a temporarily over-extended price of $1628 on the August contract. Now, i can read a chart like anyone else and the busting of the 144 daily EMA I figured wouldn’t go down so easily, which started the day at $1624. So, even coming into the COMEX close that price was not to be maintained, even though a fresh spurt of buying took the price in the last 15 minutes of trading back above $1625.
Gold settled for the week just below that important level at $1622.25, setting up another opportunity for one last attack before the delivery period begins on August 1st. Watch for another hard raid to force liquidation on those longs on short margin leashes from fresh positions taken late in the month.
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