Banks make money by creating debt. This is paper money and it is created with nothing backing it. Therefore gold is an enemy to the banks because it represents REAL money and cannot be created out of thin air.

Because of this, the major banks engage in futures trading to hold down the price of gold. If they can control the futures markets, they can keep the price from rising to its natural price which would be in the thousands of dollars per ounce.

The following is from Ed Steer this morning:

The latest report shows that three or four banks hold 75% of the entire non-U.S. bank short position.

It isn't rocket science to figure out who is holding the price of gold down and the goverment is looking the other way.

The current position limits per trading entity [for all months] is 6,000 contracts for gold. According to this Bank Participation Report... JPMorgan and HSBC are short 116,790 contracts. If they followed the CFTC regulations, the total short position allowed is 12,000 contracts total for both banks. So, they are currently 104,790 contracts over the position limit in gold.

This is against the laws that were created to keep the "free" markets from being controlled by those who have the money to do so.

The CFTC will not even enforce these limits. At the moment, there are effectively no limits in gold or silver. The bullion banks are allowed to short whatever quantities of gold and silver on the Comex that's necessary to control their respective prices... and that's exactly what they've been doing for the last 20+ years!.