FOMC Minutes' Drive Gold lower; Immediate Rebound
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Wednesday the FOMC delivered minutes from the last Federal Reserve meeting. The minutes were about the same as usual -- a lot of words that said nothing or confirmed how clueless the Fed is. When the minutes were delivered at 2 p.m. EST, markets had a very muted reaction, but gold found itself under pressure.
For 20 minutes, the sellers were back, and gold fell about $10. However, by the end of the day, gold rallied all the way back as if nothing happened. Gold sold off again overnight, testing Wednesday’s low before once again rallying back to near the unchanged line.
The metals now appear to have put in near-term highs and should be headed lower, with a high probability of testing the lows that were made three weeks ago. Bitcoin has stabilized, central banks are in full manipulation mode, and the currency wars are heating up.