Robust Bounce for Precious Metals Market

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There was some quirky behavior in the gold market – as a consequence of the market-shock from the announcement by Dubai World that it was essentially defaulting on its debt. The first reaction of the gold market was a move up, although gold gave up those gains over the course of trading on Thursday.

Then there was the much more suspicious move in the gold market the day after the announcement – which (by pure coincidence) occurred when U.S. markets re-opened after the U.S. Thanksgiving. Gold plummeted over 5% in essentially the blink of any eye. It then bounced back nearly as quickly.

This “delayed reaction” reeks of the gold-sabotage operations for which the anti-gold cabal have become famous. However, the powerful rebound of not only the precious metals, but also the precious metals miners has provided a vivid illustration of the waning power of that cabal. Ambushing a market which was clearly caught over-weight on the long side is precisely the sort of attack which has been overwhelmingly successful in the past.