Jim Sinclair Explains Why Gold was Smashed Today

With gold trading down over $60 and silver lower by more than $2, today King World News interviewed legendary Jim Sinclair.  When asked about the action in gold, Sinclair stated, “Statements made by Mrs. Merkel, in Germany, this morning would have us believe that both the US Fed and Germany’s influence on the ECB would result in a willingness to accept a severe deflation, rather than willingness to accept a severe inflation.  The selling (in gold) sent some of the fundamental guys out of their positions in gold, which affected the technicals.”

Jim Sinclair continues:

“Technical analysis, when looked at, is really everybody looking at the same thing.  So the sellers are chasing each other trying to find the bid.  I believe that what started all of this is purely political in nature.  I firmly believe there is no political will, on the planet anywhere, but especially in the Western world, to invite a severe deflation.

As the deflationary forces continue to surface you will see the absolute opposite.  I firmly believe you are more apt to have QE to infinity than you are to welcome rising unemployment and declining business activity.”

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