by David Kranzler
Investment Research Dynamics
As discussed earlier, today’s price-action in the paper Comex gold market is nothing that a reflection of the Fed’s desperate attempt to keep the price of gold from breaking out above $1300. The reason for this is that a break-out above $1300 would trigger a lot of computer-generated buying and likely catapult gold in the $1500’s rather quickly. If you notice, since the end of April the Fed has slammed gold as it traded above $1290. $1300 was rejected on May 2nd and 3rd. It’s similar to when gold was punching on the ceilings set at $400, $500, $600 etc back in the mid-2000’s.