KW: There is a war on gold right now. The metal has been drifting slowly higher and reached a new 52 week high on Thursday around USD1315/oz  until it was bludgeoned back to below  USD1280 for a brief period before staging a gradual recovery late in the evening to end at USD1278 (see red line). You can see the massive hits in the graph as traders loaded up with short derivatives that according to Jason Goepfert of Sentiment Trader places commercial hedgers short positions near record highs. Of course with mounting billions in short positions the physical market dives as well. It’s called manipulation to you and me.

However, with demand for the physical due to global financial uncertainty the following day (green line) results in gold ending the week nearly back at USD1298.10.

What this means is that the manipulation of gold shows no end. It has the hands of the U.S. Federal Reserve all over it as it is only the FED that can take such huge bets against the rising tide of uncertainty but the reality is as so many commentators are still saying: the FED is not only out of ideas but they are witless about what to do as the reality of the U.S. economy stalling and heading to recession becomes evident to the most reticent non believer.