Gold Price Artificially Pressured Down
By GCRU Gold News on Monday, September 22 2014, 02:27 - Permalink
Clearly, since 2013, we have entered a period where stupidity is rewarded. It has paid off astoundingly well, for more than a year now, to follow the mainstream consensus and the bankers’ recommendations (bullish on stocks and bearish on gold), when normally what looks obvious to the majority is already priced in and the market is begging to turn. Either we are getting very close to the last breath to inflate the bubble, or it keeps inflating beyond 2014 to the point of bringing the whole financial system to a devastating explosion!
What are the downside risks for precious metals if gold’s major support at $1,180 is hit by a flash crash? Many see $1,000 as the next support and, technically, it is the most obvious support. But I don’t think it’s possible to press gold down to that point. We could see a marginal breakout to the downside, maybe to $1,100. In fact, the $1,200 support has been attacked twice already without success and has produced consequential rebounds in the price. Every time this support is attacked gold becomes in backwardation and the commercials become again aggressive buyers on the COMEX. Therefore, it’s pretty safe to say that this $1,200-$1,180 support will hold!