ed steer on the precious metals yesterday:

Gold didn't do much yesterday... nor did silver. It was, as Ted Butler keeps saying, just another day off the calendar. What happens from here is anyone's guess. I can give you a couple of excellent reasons why the price of both gold and silver may go in either direction. Here's a reason why the price of gold may decline [taking silver with it] in the very short term.

The bullion banks are still massively short gold... 26.8 million ounces as of the cut-off for last Tuesday's Commitment of Traders report. If the bullion banks decided to pull the pin... the down-side potential may be considerable. The critical 50-day moving average sits at $1,182... with the 200-day moving average at $1,110. Just touching those moving averages would drop the gold price by around $40 and $120 respectively. Will it happen? Don't know.

But, if it does happen, I expect that the silver price would be taken down as well... as this is the critical metal for these same bullion banks. I don't expect the price to remain at those low levels for very long, either. And I'm still 'all in'... regardless of what words I write here.

http://www.caseyresearch.com/displayGsd.php