Gold Trend 19/June/2013

Long Term-Neutral – Need a monthly close above 1490-1526 in May to regain Bullish status.
Medium Term=Bearish Need a close above 1650-1675 to neutralize.
Intermediate Term=Bearish –need a close above 1448 for bullish
Short Term=Bearish- the next support target is 1337 – 1353
Support and Resistance
(NOTE JUNE GOLD NUMBERS)
Initial Resistance 1370-1381 and 2nd tier 1388-1394
Initial Support 1343-1353 and 2nd tier 1323-1337

FED AND THE FOMC

The Fed meeting comes to a head as they announce the FOMC results. Odds favor they keep the same track they have been following. Their new game, Fed SPEAK, could certainly come into play but odds favor more of the same. The control boyz will be in full force and they will manipulate the price the way they want. With the liquidity gone and the open interest plummeting as more and more traders leave for HOT markets, it makes it easier and easier for the control boys to take full advantage.

The breaking of the back of gold in April has left gold abandoned for now. What this has done is allowed for the control boyz to cover most of their short positions and are now ready for one of two things. The first is the potential to be fully armed if another bull leg starts as they could begin the short process all over again. The 2nd is for them to participate on a gold run up.

The one developing factor that arose that the boyz didn't expect was the massive physical buying across the globe particularly in the east. It is important for you to realize that the move to PHYSICAL GOLD is a response to the distrust in the system and the control boyz who are operating it. The current scenario is the total management of the markets as it relates to gold is called the “SLOW BURN”

WHY DID THEY BRING GOLD DOWN ?

The reason is complex but the most important reason is that the control boyz could not have the MONEY FLOWING TO GOLD but instead to EQUITIES. That is their only chance to ever come out of this without total collapse. In other words, if the power can be shifted to the multinational corporations by exploding their stocks higher, it will give them the ability to go out and purchase assets and companies on a global scale and allow them to forge into new markets. This all in the hopes that they provide some economic activity that will allow for this mediocre revival to continue.

THE NEW REALITY IS THE MERGING OF CORPORATE AND POLITICAL AMERICA AS THE POWER.

The power to what?

The power to keep the US Dollar as the world currency and the power of corporate might. Currently they are doing it by military means and anyone who refuses it (Saddam, Kadaffi) Iran, North Korea, and anyone else (EXCEPT CHINA AND RUSSIA), have to answer to the “machine.” That is why the other side of the coin has China fighting to work its currency into the world market in order to become a competitive force.

The other powers (China and Russia) know exactly what is going on and how the US maintains control of the entire global grid. The problem is that they also have their problems as well.

As detailed earlier in the report, China is in a heap of big trouble as their banking system is out of control and grave pressures are being set forth.

You may have noticed that the US stock market is leading all major markets while China, Brazil and a host of others are taking some pretty big hits. Brazil is under major demonstration by the populous.

What is going on in this so called prosperous nation we've been hearing about ?

It’s the same as everywhere else. The joining of geopolitical and multilevel corporations for total control has pretty much chastised the rule of law. Just like is happening in many nations.

About two weeks ago, some small protests started on Paulista Ave in downtown São Paulo over a $0.10 increase in the bus fares. Of course, the protest was about more than a hike in fare though; it was about the horrible state of Brazil’s infrastructure, government corruption, high inflation and low growth – basically everything that’s dysfunctional about this place.

Predictably the police didn't handle things well, so more people came out, fueling more protests. Last Friday police began firing on protesters and beating journalists – it looks like the government has finally woken the slumbering beast here. 230,000+ people are said to have headed out to the streets of São Paulo, with large protests in Rio and other major cities as well.

The bottom line is the situation on a global scale is getting worse as the economies begin to falter.

The entire mess could end up very ugly for most of us if this debt engineered match up with government and corporations doesn't work out. The control boyz have managed to TRANSFER TRILLIONS OF CHEAP MONEY into the hands of the financial institutions and major corporations while at the same time having transferred all the debt to the taxpayers and populous.

At some point the boiling level is going to reach a tipping point.

Gold Hourly Chart

The choppy and overlap patterns have once again turned gold down and the short term trend remains down. The upper yellow dotted resistance lines have held gold inside its downtrend channel and as we’ve mentioned the FOMC meetings are not usually good to gold. That has once again played out this week. Resistance is now the 1371-1383 area and support is now 1343-1353 at the lower purple and yellow lines on the chart below price. There’s minor support at 1358-1363 at the first purple line that was touched today.

In summary, the trend remains down as we head into mid-week Wednesday and the Fed and the FOMC come out and do their dance step. The control boyz will be waiting in wing.

What Next?

Gold remains very choppy and we can’t eliminate a plunge on Wednesday to the 1343-1350 area as the control boyz have the go-ahead to clear the stops on the FOMC. With mid-week Wednesday in play, we could see the low for the week develop and a turn up after the FOMC. HOWEVER --- be aware that the trend remains down. We have some important cycles coming due but that doesn’t mean they can’t press gold lower until the cycles do bottom.

Bottom line

It’s a waiting game until the FOMC meeting and right now with what we've seen in the past couple of weeks, nothing is currently trust able. Cycles are due to bottom along with seasonal historical trends, BUT PRICE IS THE ONE that has to make it happen and we can’t eliminate anything from the mix with this FOMC meeting. Odds favor the FED keeps things intact with QE and the metals should bounce. However, as we’ve seen, bounces on fed QE doesn't last and hasn't lasted. Something else is going to have to give in order to see gold catch a bid that lasts more than a couple of days.

The physical demand has been monster but that hasn't helped price..yet. What gives ? Obviously the futures market bears are still in control. The COT is bullish but the commercials have deep pockets and might not be ready to pull the plug on the funds. In fact, the commercial producers and merchants are not usually the drivers. They wait for the FUNDS to exhaust themselves and begin to take profits. It’s when they LOOK TO BUY or cover their shorts that they realize that the commercials who are holding the other side of the trade are not selling at low prices. That’s when the big up days begin.

 

YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS 
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED. 

 Do your own due diligence. 

No one knows tomorrow's price or circumstance. 
 I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader. 
I do not accept responsibility for being incorrect in my speculations on market trend. 

 King Regards