It was a powerful conversation as Gary indicated that gold is now signaling the increasing likelihood of another overnight sell-off event, similar to what was seen in late June, in which the price collapsed from $1400 oz. to just under $1200 oz.
In describing what gold is signaling to the market right now, Gary noted that, “Over the last month and a half, gold deviated and started to follow the dollar down[wards], which I was afraid was a warning sign that gold would be in trouble once the dollar started to rally…and that’s exactly what has played out. The dollar rallied over the last three weeks, [and] gold turned back [down]…almost to the exact day that the dollar started this rally.“
Traditionally moving opposite the dollar, this latest development in gold according to Gary, suggests that funds are shorting in advance of another,“Typical pre-market, middle of the night hit, where you see 200 tons of gold dumped on the market with no buyers to support it…At least two big banks, I would say Goldman Sachs, JP Morgan, maybe a big hedge fund…are trying to push gold down to that support zone at around $1000. So I think they’re already short, and right now they’re letting the [reversing] dollar do the work for them.”
- Source, Bull Market Thinking, read the full story here: