A lawyer interviewed at the Daily Reckoning last week figures that Goldman will lose or be forced to settle the case. He figures that despite all the hype, it is actually a simple case and GS is simply guilty. He reckons that the government has tons of evidence that will show itself over the next 6 months to year during the course of the trial. He also figures that this is just the first in a series of trials and that many other banks will be implicated in similar charges.

GS has the largest positions of any wall street bank in forex and in gold options. This will have a huge impact if they are forced to deleverage themselves. Quite simply, the ability of banks to manipulate gold prices through paper is disappearing.