James Turk: A Massive Short Squeeze Is About To Send Gold Skyrocketing
First, despite all the pushing and shoving of the gold price last week, it only dropped 90¢ by Friday’s close. That is an impressive performance. Silver actually closed up 51¢ for the week, which I will get to in a moment, after we cover gold.
Second, gold came out unscathed from the battle on Friday, which was also the end of the quarter. We often see quarter-end window dressing by the price manipulators because a low price makes the losses on their short positions look more palatable. But that gambit didn’t work for them the way it used to.
On Friday gold was pushed all the way down to $1,240 during thin Asian trading, which was a perfect set up to scare and shake-out weak-handed longs, and also to get as many call options as possible to expire out of the money. But buyers appeared at that $1,240 level.