FED creates dumpster fire, gold and silver hammered
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The FED strikes again; all markets melted down except the U.S. Dollar. There were rumors that the FED would shift their opinions on monetary policy and could start to taper. The big question: Is this a test balloon to see market reaction? Will the FED give in to Wall Street?
While the Dollar exploded higher, making two-month highs, gold, silver and platinum got hammered. The route has continued this morning but is not as dramatic as it appears. Gold shows down over 50.00 but is only down about 6.00. This is a matter of floor closing versus electronic trading. The official close for the gold market is 2:00 EDT; all the selling took place after that, which gets counted on today’s prices.
The bottom line, it was an ugly day for gold, silver and platinum. However, the selling did not trigger a sell signal in our algorithms. We remain long gold and silver, we would be short platinum, but we do not trade it any longer due to a lack of liquidity. Physical positions should not be affected by this action; we do not trade physical; we accumulate.
Gold and silver are on the cusp of reversing to the short side. A lower close today will trigger a short. Obviously, this action is ugly and painful; however, we will patiently wait for the signal change. Our signals are all mechanical, with no room for opinions or emotions. There are times you must endure the pain, not letting emotion, news, or opinions overwhelm calm, rational thinking