BIS Intervenes in the Gold Market to Aid Battered Gold Shorts

from King World News

Yesterday King World News reported that a major swap dealer, who is heavily upside down on short positions in the gold market, is now in trouble. KWN then posed the following question:

If the price of gold continues to surge, will some of the entities who are over-exposed short the gold market go insolvent? Or will the price of gold be brought down so the troubled shorts can regroup?

And today, all the sudden…

Well, some price capping in the gold market has been quite apparent in the last couple of trading sessions, but today it was reported that $5 billion of panicked paper gold futures selling occurred right after the physical market closed in London. But what really happened? Was it really panic or something else?

Continue Reading at…