Gold Margin Calls This Week?

Gold has literally gone straight up $ 400.00 since June, 2011, which is a 20% plus rise in less than 2 months. You can see the Kitco chart below.

This leads me to think that there will be a bear raid this week before market expiry on thursday. The  shorts are getting blasted and are taking huge losses. I would think the CME will add to this attack with a hammering of margin raises on Gold to shake out the weaker players. If nothing else, gold taking a breather lets the market settle and short term players will take profits. Gold will back fill its recent rise, all leading to a healthier and less extreme ride in Gold.

Futures are up big overnight. Asia is all green and Europe is continuing the trend for the day.

What will happen in the Financials for the rest of the week?  Bank of America is looking wobbly after
all of the bad news out of the Euro banks last week. And Bloomberg reports that the Fed has propped up Citibank.......

Citigroup was in debt to the Fed on seven out of every 10 days from August 2007 through April 2010, the most frequent U.S. borrower among the 100 biggest publicly traded firms by pre- crisis market valuation. On average, the bank had a daily balance at the Fed of almost $20 billion.


It seems that every day we get new reports that all of our major banks are insolvent. If this story continues, all bets are off on gold and gold heads to the moon!