Turk: Gold Shorts in Retreat, Currency Destruction Guaranteed
April 10, 2012
With gold trading at $1,660 and silver attempting to rally back to $32, today King World News interviewed James Turk out of Europe. Turk told King World News that the shorts have not been able to break the gold and silver markets. Turk also said the current trend guarantees destruction of the currencies. Here is what Turk had to say about the situation: “It has been a rough couple of weeks, Eric. That is not unusual over a holiday period, like the 4-day weekend here in Europe. Liquidity usually dries up during these periods, so short-term volatility can often be the result. And we have seen that in both the precious metals, with gold again testing support at $1650. Silver is testing support under $32.”
James Turk continues:
“This short-term volatility is particularly obvious in silver. The intraday charts the past few days have some large swings, which result from the big shorts pushing the paper market around to see if they can dislodge some longs. This is particularly to see if they can pick up some physical metal from the weak hands.
The paper shorts never go on holiday. They have too much at stake, and they use periods of limited liquidity to hit the market hard to try to shake people out. The shorts are now being forced to retreat, and I have been waiting for another catalyst that will send both precious metals higher, Eric.
Another round of QE by the Fed would do it, but that probably won’t happen until June. In the meantime, Europe is starting to unravel again, but the stakes are getting much bigger….