By Peter Cooper

If the gold market was a horse race then after yesterday’s sudden fall for no apparent reason observers would be calling for a stewards’ enquiry. Certainly those looking at a replacement for the London gold fix ought to be paying attention.

Just days after Goldman Sachs renewed its propaganda onslaught against the precious metal in a long article on Bloomberg the price dropped by 2.3 per cent, its biggest one day drop this year. Did it fall or was it pushed?

Blatant manipulation

Veteran gold trader Jim Sinclair quickly offered an answer on his website: ‘Manipulation such as the sale of $1.3 billion dollars worth of paper gold at an illiquid time period today is not to protect the dollar or bull the general equity market.

‘It is to make money for the manipulators that want here to cover their shorts and initiate to expand their long positions. That sale was a pure construct as there was no news to sustain the sell or to initiate it in the time span of its occurrence.’

It is not often that manipulation is so blatant. But the timing so soon after the Bloomberg piece on Goldman’s bearish stance on gold is perhaps mere coincidence. And pigs can fly.

Mr. Sinclair reckons this could be the last take down of the gold price which ‘will make new highs after the failure of this clearly false price construct of this morning’s illiquid time period.’

The gold price did indeed appear to rebound this morning.

http://www.arabianmoney.net/

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 -- Published: Tuesday, 15 July 2014 | E-Mail  | Print  | Source: GoldSeek.com

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