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TheStreet Open House

Bernanke Fails to Move Gold Market Lower

The bankers immediately drove the price of gold lower (as expected), but could only manage a feeble move of about $10 an ounce lower, to a low of $1647 an ounce, with the low price of the day coming a mere 10 minutes after the announcement. Twelve minutes after the propaganda was released, a bullion Web site known for parroting all of the bearish propaganda released this headline :

Comex Gold Backs Down as Bernanke Holds Off on Fresh U.S. Monetary Stimulus Package

However, by that time the Big Buyers had already started buying, and the price of gold started to rise. A mere 10 minutes after the bankers had taken the price of gold to its low of the day; the Big Buyers totally reversed this downward move -- and took the price of gold to what was (at that moment) its high price of the day.

As I'm writing at this moment, the price of gold has moved above $1680 an ounce, a greater than $30-per-ounce reversal -- and a devastating defeat for the banking cabal. About the only thing more "bullish" than a rising chart is a chart showing the price being pushed down, and then strongly reversing higher.

This picture tells any/all knowledgeable investors that this is a buoyant market, one which is "trying" to move higher. Since most of the traders (i.e. gamblers) who dominate daily action in markets don't understand the fundamentals, they allow themselves to be totally guided by such momentum indicators.

We now have back-to-back weeks in the bullion market each painting a different picture of the bankers' (new) inability to cap prices. Last week, we saw a market steadily rising day-by-day. Following nearly six months of totally indecisive price-action, it was a strong indication that "the next rally" was here.

Today we received reinforcement of that message: the bankers attacked the market with one of their coordinated operations -- and were soundly thrashed by the "longs." The rally has been confirmed. Now it almost appears as if it is the Bulls in the market who have been writing the script.

Not only do we see two consecutive weeks of unequivocal bullish strength to proclaim a new rally in the gold and silver markets, but both gold and silver are poised to complete what is known as "the Golden Cross." This is where not only the current price, but all shorter-term moving averages (price-averages) "cross" above the long-term (200-day) moving average.

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