On the heels of an explosive mid-week surge in the price of gold and continued weakness in the US dollar, today the man who predicted the massive spike mid-week spike in gold ahead of time warned King World News that the West is now collapsing. London metals trader Andrew Maguire also spoke with KWN about what people should expect to see next in gold. Below is what Maguire had to say in this tremendous and timely interview.
Eric King: “Andrew, you made a fantastic call at the end of last week. You said that gold absolutely could not stay below $1,300 for more than a few days. We saw the bears holding the price below that key level Monday through Wednesday, but they capitulated on Thursday as gold soared solidly back above the $1,300 price level.”
Maguire: “Eric, last week we talked about the Fed being cornered. The reason we saw the price of gold being held below $1,300 is because the Fed was literally being forced to react to the price rise of gold against the US dollar. This had to do with the government shutdown, and it was forcing their hand — to give the appearance of stability as the dollar was declining and under tremendous pressure.
So, the Fed moved in to short gold and buy the dollar in the FX markets. Now, the reason I told you gold wouldn’t be able to hold below sub-$1,300 for more than 3 days is because of ‘spot market indexing.’ While these synthetic paper markets for gold are putting pressure on the price of gold, the underlying physical market is on fire….