IPFS News Link • Gold and Silver
IPFS News Link • Gold and Silver
On several recent occasions gold has attempted to push through the
$1,270 per ounce price. If the gold price rises beyond this level, it
would trigger a flood of short-covering by the hedge funds who are
“piggy-backing” on the bullion banks’ manipulation of gold. The
purchases by the hedge funds in order to cover their short positions
would drive the gold price higher.
With pressure being exerted by tight supplies of physical gold bars
available for delivery to China, the Fed is growing more desperate to
keep a lid on the price of gold. The recent large decline in the stock
market threatened the Fed’s policy of taking pressure off the dollar by
cutting back bond purchases and reducing the amount of debt
monetization.
Thursday, February 6, provided a clear picture of how the Fed
protects its policy by manipulating the gold and stock markets. Gold
started to move higher the night before as the Asian markets opened for
trading. Gold rose steadily from $1254 up to a high of $1267 per ounce
right after the Comex opened (8:20 a.m. NY time). The spike up at the
open of the Comex reflected a rush of short-covering, and the stock
market futures looked like they were about to turn negative on the day.