In my comments yesterday to FGC’s post on Silver getting “over the hump”, I said the Tuesday takedown below $30 would be the last great opportunity to buy and it did only last the one day, as expected.

The one “fly in the oinment” I saw was if another phony job number caused a one day blip in this latest breakout. If it did, it would be from a higher low than Tuesday’s and wouldn’t last more than a day.

Well, even before we get that number in a couple of hours, the desperate banksters seized on a supposed report that China’s central bank didn’t buy any gold in May? They have used what is a non meaningful piece of mfg. news, to rug pull both gold and silver one last time.

First of all if true, it was already reflected in the recent $100+ declines in gold in both April and again in May. The Chinese stepped back and that is one reason the gold price corrected after it’s massive breakout and run since Feb.

Second, why would a past period of non or lesser buying cause gold to drop $50 overnight?(Silver a dollar as well) It wouldn’t, because it is actually a bullish development. You know the Chinese are CONTINUOUS gold accumulators, so if they stopped for a brief period and prices corrected, they are probably already back in buying again.

This kind of mfg. nonsense reporting(typical for Bloomberg) on a story that may or may not be accurate, is a desperate attempt at one last chance to cover naked shorts. Buy the dip. It won’t go back to this week’s earlier lows and it won’t last long. Possibly not even after the 8:30 job number release.