LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Precious Metals Update Video: Gold Monthly Chart breaking out
By: Ira Epstein

FT's Martin Wolf: Who cares about the prices of useless metals and market rigging?
By: Chris Powell, GATA

The Drip, Drip, Drip of Recession
By: David Haggith

Anatomy of an Impulse Move in the Precious Metals
By: Rambus

Recession Rumbles
By: John Mauldin, Thoughts from the Frontline

COT Gold, Silver and US Dollar Index Report - July 19. 2019
By: GoldSeek.com

Gold Minersí Q2í19 Preview
By: Adam Hamilton, CPA, Zeal Research

GoldSeek Radio: Bob Hoye
By: Chris Waltzek, GoldSeek Radio

Precious Metals Big Picture, as Silver Gets on Its Horse
By: Gary Tanashian

Why This Gold Rally Feels Different
By: Rick Ackerman, Rick's Picks

 
Search

GoldSeek Web

 
Huge short-covering rally for gold and silver as Greece and China crash


 -- Published: Sunday, 28 June 2015 | Print  | Disqus 

By Peter Cooper

Gold and silver will see a huge short covering rally on Monday that will lift prices out of their recent trading range and set the precious metals up for stellar price increases in the coming weeks and months.

Short positions on the Comex futures exchange are presently at record levels (click here). This is often the case at key reversal moments. If the gold price moves against these contracts then they are automatically forced to cover and buy gold, amplifying the movement of the price to the upside.

Black Monday

This is about to happen on Monday for two reasons: First, the Greek debt crisis has finally gotten out of control. There was not a last minute deal, instead the government has called a referendum on July 5th and asked for its debts to be forgiven until that vote.

Nobody expected this and there is a run on ATMs in Athens right now. The IMF will probably now declare a default on Tuesday as it will not be repaid. We donít know what the referendum will ask. We donít know how the Greek banks will reopen on Monday.

Itís a mess and now looks like a slippery slope into Greek defaulting on its 348 billion euro debt and leaving the euro. Financial markets have been expecting a solution, not this nightmare scenario. Gold will rise as a safe haven as the euro falls in value.

But secondly there is now an ongoing stock market crash in China. Money is hemorrhaging out of Shanghai, Shenzen and other bourses. Where will this money go?

China crisis

Given the limited options for Chinese investors, gold is the obvious choice, especially as it starts to rise in value. This is a huge new source of money set to pour into precious metals.

However, it is the extreme nature of the wrongly-placed short betting that is the reason to expect a particularly dramatic surge in gold and silver prices as Adam Hamilton at Zeal Intelligence pointed out last week, although he did not then know what Greece had installed for the markets or about the Chinese stoke market crash.

These are not one but two extreme catalysts to hit financial markets at the same time. Monday is going to be quite a moment, and precious metals and the US dollar will be the only winners in the carnage.

http://www.arabianmoney.net/


| Digg This Article
 -- Published: Sunday, 28 June 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.