First, a quick note that some sources are seeing a decline in gold to $1140-45 over the next 10 days. Then a blistering rally into June. Who knows. The decline yesterday and today has gotten us close to this level so maybe the decline won’t take that long.

In case anyone is following the conspiracy theory side of gold, a former Goldman trader in London recently notified the CFTC (regulatory body for futures trading in the US) about manipulation by JP Morgan and others. The theory of several major banks capping the price of gold and silver with large naked short positions is old news, pushed heavily by GATA and Ted Butler and others. But now, despite strange machinations that removed any participation or mention of the whistleblower in the recent CFTC hearings on short selling, as well as a strange car accident that occurred two days after this trader went public, the New York Post has published an interview. This may be the first mainstream mention of the manipulation story in the futures markets for gold and silver.

Here it is:

[1] http://www.nypost.com/p/news/business/metal_are_in_the_pits_2arTlGNbMK7mb1uJeVHb0O/0