Author: Julian Phillips
Posted: Tuesday , 10 Jun 2014
JOHANNESUBRG (GOLD FORECASTER) -
After some considerable selling of gold from the SPDR gold Exchange Traded Fund in the preceding months, early in 2013, Goldman Sachs came out with a warning that the gold price was going to fall and fall heavily. It did after Goldman Sachs and JP Morgan Chase helped it down with a bear-raid. Thereafter, selling from the SPDR fund persisted throughout 2013.
But it became clear that this selling of physical gold provided an opportunity to ‘short gold’. Goldman Sachs along with JP Morgan Chase and their clients, followed through on their forecast and around mid-April 2013 plus/minus 400 tonnes of gold was dumped onto the market knocking the gold price down by $200 within a fortnight. This encouraged more selling from the SPDR gold ETF and eventually the gold price was pushed down to $1,180 from the $1,650 level it stood at in early 2013. The ‘bear-raid’ was effective.
After the ‘bear-raid’ in April 2013 Asian demand came in, in tremendous force and drained the gold market of all of that tonnage from U.S. sellers of gold taking out a total from the developed world ...