Last week we wrote about the importance of gold closing above its heavy resistance point of $1285, and whether the bullion banks would attempt to naked short the price on Sunday with a massive number of paper contracts. And as we begin a new trading month here in May, it appears that we had at least a minor capitulation from the cartel as gold not only rose above $1300 per ounce this morning, but it is mirroring the dollar as the reserve currency continues to decline precipitously.
A lack of intervention in the Yen and strength in EUR have combined to weigh on the US dollar. Bloomberg's USD Index is back at one-year lows as, while overnight chaos sent stocks higher, it has driven investors into the safety of bonds (Treasury yields down 2-3bps) and precious metals. Gold topped $1300 and Silver $18. - Zerohedge