Borsa MAX Borsa

Gold: As most of you know, I think we’re starting an inflationary cycle. The currency manipulation by the ECB and BOJ has forced the Fed to cut rates to fight back even though the economy is fine and doesn’t really need lower interest rates. This should lead to an inflationary phase in the years ahead. Let’s face it, when have politicians ever considered the long term ramifications of their actions? If the euro does indeed right translate causing the dollar ICL to stretch into the spring then you can see we have the driver now in place for the next intermediate cycle rally in gold. Back in May the banks got caught in a massive short squeeze when they failed to drive gold down into a bloodbath phase for the first time in years. That short squeeze drove an incredibly powerful rally and one that we made a lot of money off of. They are potentially trying to make the same mistake again. Over the last week I saw multiple large contract dumps, clearly the banks were again trying to crash the gold price. But just like in May the buyers keep showing up to defeat the shorts. So it looks to me like the same thing is happening. The banks are building larger and larger short positions trying to create a selling panic and in doing so they are again at risk of getting caught in another short squeeze. I’m going to go out on a limb and predict that within the next two weeks we’re going to see a big surge higher in gold that will signal a squeeze has begun.