Thursday, June 8, 2017

Gold slammed one day before UK elections out of fear of price breakout over $1300

Earlier this morning, and just before the ECB's rate hike announcement, someone dumped $4 billion in naked short gold contracts onto the Comex futures market in order to slam down the price heading into two potentially large events which could have easily pushed gold over its next level resistance.

This naked shorting was the largest in over a month when the bullion banks sought to coax the price lower 17 days in a row to embark on some short covering of contracts going back to the November Presidential elections.

However, Draghi's interest rate nothing burger coupled with the former FBI director James Comey appearing before Congress were probably not the primary reasons for the slamdown in gold today.  But instead it may well be tomorrow's UK elections which are the main fear for those holding short positions in the precious metals as the last time there was a major election in Britain, gold shot up over $100 in a single day.
The metal broke through a more aggressively drawn resistance line already this week and now must meet the challenge of a few more resistance zones.
Gold bugs have tried to be patient with it these last few months and are hoping they are rewarded with a new breakout. 
King World News note: That is why the price of gold was pushed lower today. If the price of gold takes out the $1,300 – $1,310 resistance zone, it will indicate a massive breakout is underway. And as Adams correctly pointed out, that would trigger:
“…if it (gold) can just get over $1310 or so, it should have a good chance to once again challenge its highs from last July.” 
KWN note continues:  So, yes, if that major breakout would have unfolded today, it would have opened the door for the price of gold to challenge the highs near $1,380 from July.  - King World News


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