FXstreet.com (Barcelona) - On rumors of a major investigation into the practices of several leading, global investment banks’ practices in the commodities space – specifically in the metals space, the precious metals began the week in rally mode.

Banks’ behavior in the commodities space likely to be scrutinized by the SEC and CFTC

After years of rumored legal, but manipulative practices in the commodities space on the part of Goldman Sachs, JP Morgan and other global banks, a NY Times investigative piece may raise public awareness to the point that the CFTC and other agencies may be forced to act. For years, complaints from corporate users of aluminum like Coca-Cola Corp. have gone to the London Metals Exchange. Apparently, the LME may have been less than motivated to stop the manipulative activity as they too have been profiting.

The net result today – renewed uncertainty and an excuse to either get long or cover shorts in the three most heavily traded metals – gold, silver and copper. As of 23:00 GMT, gold futures were up over 1.3% at 1,310, silver was up over 1.5% at 19.76 and copper was up over 1% at 3.17.

Gold’s break of $1,300 a big short-term win for bulls

Up until Monday’s open, gold had been trying and failing to conquer short-term “correction resistance” at 1,300.30 according to the Sea Change Report’s Chief Market Strategist, Tim Thielen, CMT. Thielen notes that gold now should rally up to at least 1,327 before doing some backing and filling. Short-term support for gold is previous resistance at 1,300 with the 7/17 pivot low of 1,269.30 just below that. First resistance for gold comes in at the Fibonacci projection of 1,327 with an Elliott Wave projection at 1,353 above that.