Wednesday, March 14, 2012

Gold & Silver Post FOMC Statement Raid Continues

Gold and silver both continued their massive post-FOMC statement raids today, with gold down another 2%, and silver down another 4% to $31.95!
Yesterday, the Fed stated that its ZIRP policy will continue until AT LEAST late 2014, and left the door wide open for QE3 as well.  Obviously this is massively bullish for precious metals, as a negative interest rate environment is locked in for another 3 years MINIMUMThe fact is that the Fed is trapped at 0%, and cannot EVER raise interest rates again without the system imploding.
Naturally as this is massively bullish news for PM's, the cartel raided both metals beginning with yesterday afternoon's globex session. 
While silver looks like it could trade as low as $30-$31, setting up a large inverse head and shoulders formation on the charts, sentiment indicates we are nearing a low. 
During the last week of December, the Doc called the bottom at $26 within an hour of the actual low- based only on the spiritual levels of negativity throughout the PM community.  While we have not reached those bearish levels yet, the negativity of PM investors has greatly increased over the past 48 hours. 
Absolutely NOTHING HAS CHANGED folks.  If anything, a risk of conflagration has increased substantially with the ISDA's decision that a CDS triggering event has occurred in Greece- and the risk is high enough that the CME no longer wishes to clear derivatives in London.
Please also understand that we have options expiry, as well as 3 major bond sales this week, and GOLD & SILVER MUST BE SUPPRESSED IN ORDER TO ENTICE INVESTMENT FLOWS INTO TREASURY BONDS RATHER THAN PRECIOUS METALS!

Silver has now corrected $5.50 from highs as recently as last Wednesday morning.  Gold is now offering a $150 discount from a week ago levels.  Price discounts of this magnitude MUST BE BOUGHT PROFESSIONALLY INTO PRICE WEAKNESS!!

Cartel waited till today to launch the major silver raid:
Live 24 hours silver chart [ Kitco Inc. ]

Gold has been absolutely mauled since yesterday's globex session:
Live 24 hours gold chart [Kitco Inc.]