By James Corbett, The International Forecaster:
The fallout from the recent turmoil in the precious metals markets continues to rock markets. The data on the carnage that tore through gold prices Monday is still coming in and it’s staggering. The 20-year 5-day rolling average indicates that the 15% plunge in gold was a 7 sigma drop, i.e. an event rare enough that it indicates something very strange is happening under the surface. So far, there is a lot of finger-pointing.
Goldman is blaming it all on the recent news that Cyprus is being forced to liquidate much of their gold holdings to cover their still-expanding bailout. Of course, this is the same Goldman that more than covered their $1450 short position from last week but refuses to close it out, instead lowering their target to $1400. Goldman posted a $2.2 billion 1st quarter profit on Tuesday, though, so they continue to laugh all the way to…themselves, I suppose.
Citigroup, meanwhile, is positing that the gold plunge “may” be related to “some break in technical levels” and a growing appetite for risk, which hardly sounds like an evidence-based analysis.
Please follow SGT Report on Twitter & help share the message.