"Turning then to the precious metals, gold moved rather violently higher yesterday, moving from $928 to $940 in what seemed like the very blink of an eye. For a
moment there were few if any offers and we must admit it caught us utterly off guard. The illiquidity of the gold market for a few moments yesterday seemed out
of character with the other markets, and seemed truly out of character with the movements in the forex markets, for there quiet seemed to prevail, whereas chaos prevailed in the gold market.

Something that has caught our eye is the strange shift in the amounts of gold “behind” the two main ETS. The largest gold ETF, GLD, has had a marked drop in the gold that it backs, while the smaller ETF saw the gold behind it rising by the same sum. We’ve no idea what is at play there, if anything at all, but it seemed at the very least to be passing strange. What we do know is that there is substantive selling in gold between
$980-$1000, for that area has stopped gold from advancing several times over the course of the past Year. It stopped gold in July of last year; it stopped gold in March of this year and it stopped it again in May of this year. Who or what is there to sell gold is unimportant to us. What is important is that it has been stopped there again and again, and until that “stopper” is itself stopped from selling, or has finished its selling, being long is a mugs… or rigged…game. We know not which."