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Gold Prices: What Happened to the Rise?

One of the more confusing things for investors right now is why gold prices aren't going through the roof.

As the Fed, European banks, China and Japan pump massive amounts of money into global markets, investors are scratching their heads when they look at the price of gold.

Since reaching the $1,800 an ounce level shortly after QE3 was announced, gold has treaded down to its current level of around $1,650.

Money Morning's Shah Gilani appeared on FOX Business Network's "Varney and Co." program Thursday morning to explain why gold could be slipping – especially at a time when paper currencies aren't worth what they used to be.

As Gilani explains, there are more gold sellers than buyers right now. But why?

Watch the accompanying video to hear Gilani's full analysis on the year-end selling pressure on gold prices.

Join the conversation. Click here to jump to comments…

  1. fallingman | December 21, 2012

    Yeah, that's a swell explanation, except for the part where you leave out the suppression scheme orchestrated by none of than…drumroll please…JP Morgan, acting sub rosa as an agent of the Fed. They created the Fed. They control the Fed. "Gimme Bear Stearns…for nuthin' and indemnify me against loss." They ARE the Fed for all practical purposes. And when the Fed needs a competing currency whacked, guess who performs the hit?

    The "mystery" of the flat earth disappeared when people adopted a different conceptual model.

    The mystery of gold prices dropping $20-30 bucks in the lightest possible volume conditions in the middle of the night…on repeated occasions…disappears when you know that it didn't "drop," it was pushed. Who else would sell mass quantities, all at once…these big gaps down have occurred in seconds…into a market with almost no liquidity? Nobody looking to maximize the price received. Only a short seller looking to run stops and push prices lower. Only JP Morgan / The Fed.

  2. Jack | December 27, 2012

    I don't think so.Last month ,you said the gold will break up 1900$/ounce.And now,to my disappoint,so I hopeyou can give us some more detail information .

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