"Gold has busted up on the open to take out the $1300 resistance. This article explains the reasoning for that move, why it is so pivotal in nature and what to expect in gold pricing action over the short term.
In the past we have discussed how the Glass-Steagall Act repeal effectively allowed the Fed Banks to move out of the banking realm to trade in everything in the market and, as such, the Fed Banks have been able to completely manage all of the markets with the use of paper leverage since they know in advance what the Fed is going to do and going to say. To put it more simply, they have been able to front-run everything with huge leverage. That may be about to change, however, with the announcement over the weekend by Reuters that the Federal Reserve was going to review allowing banks to trade in physical commodities.
The Fed and its banks would have known this end of pure control was coming which would go a long way towards explaining why the total “in your face” paper shorting of Gold, Silver, and PM Stocks that we have seen occurred. In fact, with this news, we might be seeing the final fling of the Fed Banks in terms of complete control of the markets..."
at http://www.munknee.com/goldrunner-todays-announcement-by-fed-a-pivatol-moment-for-gold/
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