I'm reminded of Ed Steer's comments the other day, the 16th, in his report posted by gwr that the cartel was short 17.1 million ounces of gold, a good bit less than the 25+ million ounces they held back in 2008. So they're used to letting out a lot more line before they yank it in. My cynical guess is that's just what they're doing. When they're probably back-stopped by you-know-who, what's the problem? Someone is still taking the short side as the price of gold inches higher, and I'm sure it isn't my uncle Harry.

As Ed Steer said, "there's a lot of room for the gold price to run to the upside...and even more room for silver. But will JPMorgan et al. allow it?"