By Louise Yamada Technical Research Advisors, LLC ("LYA") tells King World News:
While we attempt to follow only the technical evidence, there has been a lot of chatter of the hand of manipulation in this Gold decline, raising even conspiratorial questions. Firstly, major banks recently went out with Sell recommendations (and anecdotally set themselves up to benefit from short sales).
Secondly, that the U.S. and ECB, in continuous competitive currency devaluation, may not want the public to benefit from owning the safe haven protection of Gold against such devaluations, preferring to force money into equities. Thirdly, the fear of confiscation, an event that took place recently with a European being relieved of $6M in gold at a border crossing leaving one to wonder whether even Gold will be safe.
The most plausible reason may relate to the above-mentioned sudden unwinding of structured products around Gold, resultant sales and margin calls. Nevertheless, apparently, over months, the holdings of Gold held at Comex warehouses plunged by the largest ever since record keeping began in 2001; reasons unknown.