Gold/Silver Moved Higher on Wednesday and Holding Steady, So Far
Gold/Silver Moved Higher on Wednesday and Holding Steady, So Far by Rory – The Daily Coin
Gold and silver both enjoyed nice gains on Wednesday as the markets were setting up for the FOMC meeting. This provided some of the fuel for the gains but, according to Michael Kosares, USA Gold there were two other events that helped push the precious metals to north side on the charts.
The dollar continued it’s slide as confidence in this debt and inflation machine sours on the international stage. Gold finished in it’s very predictable 1-2% higher range finishing day close to 1.5% higher. While silver actually did a little better finishing approximately 2.25% higher on the day. With both markets completely rigged and only allowed to move higher in “baby steps” these numbers are right on the mark for what we have witnessed over the past 10+ years.
Gold surged higher today on a somewhat dovish Fed statement, trader short covering and general strength in the commodities complex led by oil. Those same forces worked against the dollar sending it into a tailspin on international markets. Gold finished up $21 on the day at $1332. Silver also had a good day finishing up 38¢ at $16.54. George Milling Stanley of State Street Advisors told Reuters that he now expects gold to rise to the $1350-$1400 level. “The real gains,” he said will come in the next month.”
Now that we have Fed week behind us, markets will turn their attention once again to the developing trade wars. The Trump administration is expected to announce $60 billion in new tariffs on Chinese imports. That announcement could come as early as tomorrow.
Rising Libor rates are another problem building in the background and not getting much front page attention. Reportedly 90% of leveraged debt is tied to the Libor rate so things could get dicey in a hurry with respect to interlocking counter-party risks. We should remember that the 2008 debt problem took a turn toward crisis when Bear Stearns was hit with margin calls it could not meet.
We’ll see what effect, if any, the announcement regarding Trumps Tariffs later today have on gold or silver. For now, we’re glad to see the metals moving in a positive direction but don’t be surprised to see both smashed and lose 100% of the gains made on Wednesday. The cartel seem to be acting particularly nasty the past few weeks and holding gold and silver in check and barely allowing them to breathe much less make any gains what-so-ever.
We must keep in mind these gains are nothing more than an illusion as this is all based on the LBMA and COMEX digital paper gold and digital paper silver “prices” and not actual market fundamentals. If gains and loses were reflective of actual market forces we would discussing something completely different than these range bound gains and waterfall losses.