FOMC takedown

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Basicly all the losses were taken during the thinnest hours of trading when everybody went to sleep :doodoo:
I'm pretty sure that this trend will reverse before Christmas. Are they going to try to force pms below critical support levels before? Absolutely.
Strong support for gold is at 1680 and the 200dma at 1663.
For silver watch 32.5 and 32 as well as the 200dma at 31.

btw: Silver closed above the 50dma ($33) yesterday, gold didn't (50dma at 1728).
 
I just took a look at volumes during the midnight takedown. Over 30000 gold contracts were traded then. That could be an all time record for that time of the day. There are trading days when such volumes aren't even reached during COMEX trading (on a 1 minute basis).

... and as I'm writing this, gold suddenly turns arround up against trends in all other major markets. :paperbag:
 
It's all good fellas', let them keep pulling backward on that big ol' rubberband, because we all know what happens eventually.
 
FOMC meeting announcements are due today at 2:15pm ET
The recent QExit talks by some FED governors have been putting some pressure on pms. WE all know that a QExit is not going to happen anytime soon. The language in today's release could have some effect on pms, however. The negative Q4 2012 GDP number could be a signal that the FED is going even more dovish.
Anyway, perpare for volatility :popcorn:
 
Gold is clearly beeing held below the longterm breakout level at 1680 ahead of the FOMC. Silver could well trade below 32 before the COMEX closing bell in 14 minutes.
 
It looks like bennie told his buddies what he was going to say before his little meeting today.
 
Proof that the FED was manipulating gold and not silver. Look at the few minutes before the announcement: gold fell out of nowhere, silver didn't move at all
 
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FOMC minutes are due tomorrow at 2pm ET. It's gonna be judgement day for the metals. In the worst case we drop through major resistance levels and a violent selloff follows. The neutral case would be an unchanged close, which is unlikely to happen. The positive case would be an initial spike followed by a short squeeze, especially in gold. We're at key supports here, so we desperately need an upturn to avoid major technical damage.

Now what could be the triggers. The notes are as of the end of January, ie the bad Q4 2012 GDP numbers were not out yet. That's why I don't expect any remarks on that. It's likely a mixture of QExit strategy talks by the different fomc members. It's impossible to predict the impact of that on the metals.
 
There won't be any QExit. That's fantasy. Not saying FOMC members won't sound that drum or that it won't move the markets if they do, but it's not reality.
 
It might be interesting to hear the Bernank say that they will now buy anything and everything the banksters want to sell and that they will increase their monthly buys to double the 85 bbn they are currently buying. That 'oughta do it!
 
http://www.silverdoctors.com/comex-...-global-mine-production-trades-in-single-day/

"COMEX silver futures traded an all-time daily record of 376,301 contracts today, surpassing the previous record of 319,204 contracts set on April 26th, 2011. The volume traded in the front month of March alone was a record setting 354,295 contracts!

To put the number in perspective, 376,301 contracts represents 1.88 billion ounces of paper silver, or approximately 2.5 years of the entire global silver mine production!

The 1.88 billion ounces of paper silver traded Tuesday amounts to 902 days of global silver production!!"
 
There's a war going on behind the scenes for sure.
Duck and cover if you're in the paper game and get some physical armor :silver: :gold:

 
Very aggressive dip buying in silver after the FOMC announcement. Volumes exploded once again. Gold looks apathetic in comparison.
 
Classic case of sell the rumor buy the news in gold after the FOMC release:
20130222_EOD1.jpg
 
The charts looks the same as just about any other day. Used to be (a few years ago) you could look at a chart and immediately tell if there was a FOMC statement released because it moved the market dramatically.
 
well I suppose, any possible bullshit is (slowly) getting priced in ahead...
 
The FOMC is meeting on Wednesday. I guess the fear trade over Cyprus is probably more important than the QE greed trade right now.
However, some effects from the announcement could be seen depending on the QExit rhetoric (which we all know is not going to happen).
 
If the bank run begins to go viral in Europe, with people in Italy and Spain panicking at the thought of outright cash confiscation [and rightfully so at that] then expect to see an unprecedented slam the likes of which has never been witnessed. The Dark princes will not be denied their due interest payments and will do whatever they must to destroy any and all motivation to shift out of their beloved Euro and in to 'real money' like gold and silver. It will matter not when the European Union dissolves though, because when that happens, all those euros become worthless as countries morph back in to Deutchmarks, Escudos, Pesetas and Lira.

This is the single and only thing the Brotherhood fears, reversion to sovereign currencies, since that will be the almightiest of haircuts.
 
Gold is stuck in a $4 trading range between 1610-1606 before the fomc announcement. Smells a bit fishy.
 
Miners are NOT signalling a takedown:


SLW
30.19
-0.27
-0.89%

NEM
40.44
+0.07
+0.16%

GG
32.77
+0.19
+0.58%

ABX
28.81
-0.03
-0.09

^HUI
353.99
-0.24
-0.07%
 
...
Goldman Sachs does not expect any policy changes - or change in message - at the March 19-20 FOMC meeting. The committee is likely to recognize the recent improvement in the data through a modest upgrade of the outlook paragraph in its statement and its updated forecasts. But Goldman does not expect the statement or the post-statement press conference (which has been brought forward in the Fed';s new exciting communications policy to avoid market volatility) to signal increased concerns about costs and risks of QE, nor do they expect much additional clarity on what constitutes a "substantial improvement" in the labor market (as we noted yesterday). So bottom-line, more of the same...
Click to expand...

http://www.zerohedge.com/news/2013-03-20/green-smoke-rising-fed-fomc-conclave-ends
 
With the bank turmoil in Cyprus and the associated loss of trust, it is quite possible that the Berspank dips in to his pocket even deeper, maybe increasing purchases by some yet be specified amount. Not being specific would allow him to "test the waters" before making any real commitment.
 
I don't know, looking heavy right now. 1600 should be held by the close. Anything over 1610 would be fantastic.
 
*FED SEES ECONOMY RETURNING TO MODERATE GROWTH AFTER Q4 PAUSE
*FED CONTINUES TO SEE DOWNSIDE RISKS TO ECONOMIC OUTLOOK
*FED MAINTAINS $85 BILLION MONTHLY PACE OF BOND BUYING
*FED SAYS FISCAL POLICY HAS BECOME SOMEWHAT MORE RESTRICTIVE

First line was the trigger for the initial plunge.

The press conference will be the bigger mover today as Ben will try to talk the importance of Cyprus down.
 
"Although strains in globalfinancial markets have eased somewhat"
Has been deleted from the statement.
 
swissaustrian said:
"Although strains in globalfinancial markets have eased somewhat"
Has been deleted from the statement.
Click to expand...

Until it is announced that Cyprus is leaving the EU and returning to the Cypriot pound, whereupon their banks become solvent by virtue of instantaneous devaluation. This triggers CDS which in turn puts pressure on the rest of the periphery bringing Italy and Spain to their knees. Lather, rinse, repeat.:flail:
 
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