Gold Ends Week Above $1400 Despite COMEX

April 20, 2013

Coming into the European open at 3am this morning (EST) Gold was threatening to cross back through the 200 week moving average.

This is not a level I take a lot of stock in, preferring both the 144 and 288 EMA lines personally. But, many traders do use the 200 period MA as a reference point and this morning gold ran to within a few dollars of it before being stymied until London could open and the selling could begin.

For the next nine and a half hours hold was ground back down to just below $1400 until the COMEX closed, touching a low of $1392 before reversing right after the COMEX closed. After that, a slow but steady climb back to $1400 was in the works for the rest of the afternoon. Since today is options expiration on the New York equity exchanges for April, there is no surprise here that certain round numbers were maintained.

But, given the bloodbath earlier in the week this is a small technical victory for gold bulls, to push gold back up more than $80 off the low after an historic rout on Friday and Monday. The more I dig around the more convinced I am that this event was concocted to create havoc and reinforce the supremacy of central banks and the IMF. The problem is that enough people no longer believe that they can and will take the other side of that trade. For everyone that has sold their GLD positions this year, ask yourself who bought that gold. It’s not sitting in HSBC’s vault anymore, unless we’re talking a custodial one over in Hong Kong just before being sent by ship back to Shanghai.

Source: http://wallstreetsectorselector.com/2013/04/gold-ends-week-above-1400-despite-comex/

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