The Phaserl


Gold Bounce coming to an End

from Dan Norcini:

Time constraints have prevented me from writing as much as I would have preferred to this week but I want to refer back to my last comments from Wednesday this week when I posted a 2 hour gold chart.

My argument back then was and still remains the same today – there is no enthusiasm to chase prices higher at the Comex gold market. That is indicated by the falloff in volume as price has moved higher. See the chart below….

In other words, this is more of a case of traders covering short positions out of fears popping up over bona fide reports of incredibly strong buying of physical gold than it is over a new found bullish enthusiasm on the part of the hedge fund/investment community.

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5 comments to Gold Bounce coming to an End

  • Frank Zak

    Agree. Plus sell stocks in May
    and go away will not help
    precious metals.

    Classic snap back.

  • Tim

    He has been wrong in the past, so I don’t put much stock in this prediction. Look, nobody knows what will happen next. I’m keeping my stack because I don’t see an end to the money printing. That is, I don’t see how the Fed can stop printing. If you think that the Fed can continue to create dollars ad infinitum without adverse consequences, then sell your stack. Buy Treasury Bonds! Buy stocks! Buy Bitcoin! Sigh.

    • Ed_B

      Good comment, Tim. Those who study economics instead of politics know that expanding the money supply faster than expanding national production ALWAYS causes prices to rise. This is how an economy rationalizes the difference between moribund production and increasing supplies of money. Prices MUST rise… and they are. Economist John Williams at reported that his calculations, which are the very same ones used by the US Gov prior to 1990, showed 9.4% inflation for 2012. At the same time, Bernanke & Co. were saying that inflation was contained and only amounted to 2.4% for 2012. This is a difference of almost 4x, so it is clear that one or the other is terribly wrong. What does your shopping sense tell you about food and fuel costs lately? Oh, wait. The Fed does not count those. Hey, it’s not as if any of us really needs food and fuel, is it? Surely we can substitute something cheaper for these items.

  • mr620

    traders can trade all they want but there will soon be no physical in the vault. Fact is, bullion banks already settling delivery contract in cash, not bars. Buyers of physical are strong hands. Shaking the tree only affect the meaningless spot price. Physical is another price.

    • Ed_B

      Not to worry. The entire scheme rests on the use of fake money to buy fake gold, so if there is no real gold available, we can still party on and pretend that there is. :-/

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