Gold-bugs always claims that the big banksters (GS) and big bullion banks like JP Morgan, HSBC,SG, Barclays, UBS and Deutsche Bank) have been behind the the collapse of gold, acting on behalf of the Federal Reserve. Some say that their purpose was to maintain the value of the US$ because the Fed’s balance sheet jumped from $800 billion to $4 trillion and the US debt exploded to $17.6 trillion in the space of a few years since Obama taking the reign.
I don’t quite believe this conspiracy’s theory but I do believe a short term manipulation (with their deep pockets) to make quick big gain from shorting. Remember, they also have many good traders with the sharpest mind to trade against you. They will short aggressively only when the technical, fundamental and sentiments are favouring them to do so. On the other hand, when all things are favouring ‘LONG’ gold, they will manipulate upwards. That is why, I always say when Gold was up and up from $258 to $1920, nobody talked about’ gold price manipulation or suppression’.
Technically both gold and oil have a true breakdown from a descending triangle (gold) or a long symmetrical triangle (oil). Such kind of patterns generally are a continuation pattern in which Gold has a strong potential down to around $1000 or even lower on ‘flush-out’ scenario . Oil has a potential to around $67.00.