Any obvious reason for todays big drop ? :flushed:
More: http://kingworldnews.com/kingworldn..._&_Silver_Plunge_&_History_In_The_Making.htmlEric King: “James, what are your thoughts on the gold and silver smash today?”
Turk: “Well, it’s another option expiry day, Eric. Today just repeats the pattern that we’ve seen time and time again over the past couple of years. At the end of the month in order to make as many of the call options expire out of the money as possible, you always see the price of gold and silver slammed on option expiry. And these are call options that are sold by the bullion banks....
Well.. if we make a new low for the move, i'd be prepared for a move down to 1000.. I don't think that happens though. Usually we put in a low by the end of June. Might have already bottomed on this decline but it's clear that something is weighing on the metal.I find this new range to be interesting, since we've been stuck at just over 19 for so long. I wonder if they are trying to habituate us to lower prices by jerking the price down and holding it there long enough to cause some paper holders to bail out. I can't really see the reasoning behind this other than to allow shorts to get the hell out before an inevitable explosion in price.
http://traderdannorcini.blogspot.com/2014/06/gld-loses-42-tons-of-gold.htmlIt has been nearly two weeks since we have had an updated report of what the current gold holdings are in the large gold ETF, GLD. We finally got one today.
The new number came in 4.2 tons below the last reported tonnage. GLD is now holding 782.88 tons.
That this is occurring against a backdrop of events in Iraq tells me that large traders/investors are using the current geopolitical rally in the yellow metal to sell.
I had remarked some three weeks ago that the first sizeable jump in gold holdings ( nearly 8.4 tons back on May 27th) was the first good news that gold has had in some time. What I wanted to see was whether or not this was the start of a new trend among Western-based investors or more or less a flash in the pan brought on by some value-based buying that was a one-off type of transaction.
From that point, GLD only added another 1.8 tons before today's fairly sizeable drop.
I do not think it coincidental that the drop occurred as gold hit a resistance zone on the price chart centered near the $1280 region. Obviously big sellers were lying in wait to take advantage of the short-lived spike in price set off by the running of buy stops in Asian trade Sunday evening here in the West.