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The Fed spoke and the metals got hammered. After being flat most of Wednesday and then attempting to rally in front of the Fed announcement, gold and silver got hammered after the announcement.
In their own special way, the academic Fed decided to leave rates unchanged, which was no surprise except to those who were expecting a possible rate cut. After 3.2% GDP growth and an ADP number of 275,000 new jobs, the Fed remained clueless and dovish.
Gold and silver hated the news as both got clobbered afterward, putting both in breakdown territory. The action was ugly. Gold closed below the key level of $1,280 and now has its last chance to hold at $1,265. If gold fails to hold here, $1,220 to $1,240 comes into play. Our expectations are simple; the metals look ugly and are breaking down. We hold a positive view for the year but for now rallies will probably fail.