There are many writers, Ed Steer, Ted Butler, and maybe even Bill Murphy that feel the bullion banks (PPT controlled) are so short that we are headed for a sharp correction over the next several weeks before they cover. As many have reported Jim Sinclair sees the next gold (and silver) bull starting sometime in the third week in June. So are we in for 2 bad weeks of gold and silver price suppression? Maybe $850 gold and $11 silver? I don't think so. The Germans, sovereign wealth funds and hedge funds have been supporting the price of gold over the last 3 weeks (with the exception of last Friday) and will probably continue their support. An epic battle is shaping up where I hope gold will stay above $900 and silver above$14.50. The following comments from Warren Bevan on GoldSeek are pertinent.

" Gold fell 2.51% for the week after an epic battle between the bulls and bears between $990 and $960. We’ve seen these types of battles in the past but this one was the most significant to date. The move above $1,000 would have sent gold to much higher levels than I thought since the short position in gold held by the large financials is so large right now. They need to reduce it before they can “allow” gold to move higher.

It was the most obvious and temporarily discouraging display I’ve seen. The green line is the Friday trade. Normally, once NY closes and it moves into NY Globex, trading is very thin and I’ve rarely seen it move at all on a Friday. This market can only be accessed by institutions. Those same ones who happen to be short at the moment.

They could not win in a fair fight all week. Any attempt to push gold below $960 woke the bulls who pushed back and moved gold up above, far away from the technical breakdown level at $960. The long and short of it is once their opponents left for the week they moved gold lower into the $950’s. What a cheap and dirty bunch they are and the glaring, obvious move should be investigated, but probably won’t.

Their opponents whom are large hedge funds and sovereign wealth funds must not be pleased. They will be forming a plan this weekend and likely will begin operations in Asia, Sunday night in the Americas before NY opens for business Monday. I expect next week to be even more epic."