The Tremendous War In Gold Continues Near The $1,800 Level

"Today acclaimed money manager Stephen Leeb spoke with King World News about the ongoing war in the gold market near the $1,800 level. Leeb also spoke about how it will end. Here is what Leeb had to say: “There really has been a battle just below the $1,800 level on gold. It’s fierce, and it’s ongoing. Some people will say there is some government or bank selling to keep gold in check. Others will say it’s just normal profit-taking as you get toward a round number.”

 

Stephen Leeb continues:

“It really doesn’t matter. Gold is going to go through $1,800 and eventually much higher. $1,800 is not a stopping point for gold. Could it dip again below $1,750? Of course. But look at the dynamics for gold and you will see that $1,800 is nothing. It’s simply a platform for higher prices.

The question is, once gold gets above $1,800, is it going to $1,850 right away, or is it going to go to $2,500?....

“You want to hope gold does this consolidation because it’s giving you a chance to buy. If gold goes down a little bit, buy more. Hope it doesn’t go through $1,800 before you’ve accumulated all you possibly can.

Yes central banks could be selling gold to try to control the price. The Chinese, who have been the biggest buyers of gold, are also the smartest buyers of gold. Would it surprise me to find out that the Chinese have some sell orders (in the paper market) in here? Not at all. They play the game.

So there could be any number of reasons for entities to want to slow the advance of gold. The developed countries have a great many reasons to want to see gold struggle. As gold rises, it simply makes their currencies look even worse..."

 

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/10/2_The_Tremendous_War_In_Gold_Continues_Near_The_$1,800_Level.html