London metals trader Andrew Maguire tells King World News today that bullion banks and central banks are covering short positions in gold today as speculators are scared out of their longs again, the prerequisite for gold's move back up.
Andrew Maguire – Ignore The Pullback, Gold To Surge Above $1,400
London metals trader Andrew Maguire told King World News that KWN readers around the world should ignore the pullback in the gold market because the price of gold will surge above $1,400 on the next leg higher.
Andrew Maguire: “Whenever we see such a synthetic divergence develop between the wholesale physical markets and the paper-centric non-delivery markets, it allows the commercials (and central planners), who have exposure to the physical markets, to not only take the short side of these naked longs, but to do so with impunity…
“Bear in mind that the bulk of these naked short commercial positions were only able to be added above rising aggregated physical interest levels, but exponentially larger in defense of the Rubicon line at $1,308, a breach of which would threaten what is known as a ‘commercial signal failure.’ We came close to triggering this commercial signal failure but without the close proximity of an underpinning physical market, a short term price gap had been opened which was easy for commercials to fill on the downside.
Ignore Pullback, Gold To Hit $1,400 On The Next Leg Higher
That is exactly what we have just witnessed — a price gap that closed on the downside, and as is par for the course, we now have the same hot money rinsed and wrong-footed, which is the polar inverse situation of what was occurring near $1,300. The hot money is now overshooting to the downside while the commercials are profitably covering all the naked shorts they added. Commercials are also going long to hedge physical exposure at these levels. This action is no more than healthy backfilling with a fresh, higher stair step being cemented for a sustainable move into and eventually through the $1,300’s.”
((( STACK SILVER ))) while you can !!!
