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Continued:
“On the 17th of January as an example, Lloyds Bank told all of their clients to sell gold based on a head and should pattern. Lloyds first target was said to be $1,148, then below that $841 to $875, and I have never seen that from them.
What is a big sign of weakness is that these operations creating the appearance of technical damage are being done in the thinly traded access market when the majority of traders in the UK and Asia are not even in the market.
The technical watchers are so myopic, they see this pattern that is being orchestrated and go on the sell side of the market. The banks are bidding on the other side of the trade buying.
Meanwhile physical demand is incredibly robust from the eastern hemisphere creating a floor on the downside preventing a further breakdown. There are certain banking interests which have been making an effort to keep a lid on prices of gold and silver, and as I mentioned they are being met by intense Asian demand as well as savvy traders lining up to buy this drawdown in both gold and silver.
Big money is lining up to buy into any attempts to flush the price lower in both metals.”
Ahead of Fed meetings we are used to seeing gold and silver under attack. It makes sense that on the eve of the World Economic Forum in Davos we would see similar pressure on precious metals. It sounds like large interests are taking advantage of the markdown in prices.
Eric King
London Trader - Big Money Lined Up To Buy Gold & Silver
Ahead of the World Economic Forum at Davos we have seen gold and silver under pressure. One trader out of London commented, “It appears certain interests are trying to give the appearance of technical weakness, so all of the banks have sold. That tells me we are at a bottom because they are always wrong in their call. Remember they are telling their clients to sell here, and they are on the other side of the trade.”
January 26, 2011
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