Gold Delivery Strains Reappear & What Might Destroy COMEX"

"Today an outspoken hedge fund manager out of Hong Kong spoke with King World News about delivery strains in the gold market reappearing and what might destroy the COMEX.  William Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, also discussed the major problems the entities managing the gold market are now facing.  Below is what Kaye had to say in this timely interview.

Kaye:  “Gold is still trading in a very narrow range.  I find this to be interesting, especially with all these heightened geopolitical tensions, as well as the recent FOMC minutes, which showed a scaling back in the timetable for any possible future tightening of monetary policy....

“All these things are positive for gold, but we really have not yet seen that much of a move since the beginning of the year.  Gold is now up a little over $100.  So we’ve essentially traded up from the low $1,200s to the low $1,300s, and gold is down from earlier in the year when it nearly reached the $1,400 mark.

You might recall that I was warning KWN readers in early March that the gold market was primed for a bit of short-term weakness.  That concern has now been addressed as gold has consolidated and filled a gap that existed since the outbreak of hostilities in Ukraine.

I believe that for readers who don’t feel they are fully invested in gold or silver, today’s prices are still very attractive.  It’s advantageous for long-term investors to continue to accumulate physical metal at these levels.  From a trading perspective, I now think the risks are pretty evenly balanced, but the footprints of official intervention continue to be present in the gold market.  So the risk still exists that we could see a further move to the downside.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/10_Gold_Delivery_Strains_Reappear_%26_What_Might_Destroy_COMEX.html