Sellers hammered gold again this week on news from the Fed. The minutes from its latest FOMC meeting convinced traders the odds for a third round of quantitative easing are waning. This was the latest in a long line of QE3 scares that have become the bane of gold’s existence. But they are merely a distraction from the Fed’s ongoing massive monetary inflation behind the scenes, which is very bullish for gold.
Gold fell to as low as $1612.66 by about 1:30PM EST before it bounced back higher in late trade, but it still ended with a loss of 1.69%. Silver slipped to as low as $30.99 and ended with a loss of 4.14%.
Gold fell $5.23 to $1662.97 in Asia, but it then rose to as high as $1683.32 in New York and ended with a gain of 0.53%. Silver surged to as high as $33.22 and ended with a gain of 2.07%.
In our previous article we looked at whether the U.S. Dollar was headed for a major fall or not. We demonstrated how the dominance of the U.S. dollar was almost entirely dependent on the grip it had over oil producers and this allowed the oil price to be designmnated in the U.S. dollar. The U.S. has gone to war in Kuwait and Iraq over this issue under the guise of destroying “weapons of Mass Destruction” as it appears on the verge of doing in Iran.
Gold edged up to $1684.26 in Asia, but it then fell back off for most of the rest of trade and ended nearly its early afternoon low of $1654.90 with a loss of 1.08%. Silver slipped to as low as $31.756 and ended with a loss of 1.41%.
Gold fell $7.20 to $1655.50 by a little before 5AM EST, but it then climbed to new highs throughout most of trade in New York and ended near its late session high of $1693.47 with a gain of 1.76%. Silver surged to as high as $32.93 and ended with a gain of 2.27%.
The last time I called an important bottom in the precious metals sector was on December 29, 2011 (as documented here). Well, it's time for another important bottom. I believe the late December lows in the precious metals (PM) sector were THE lows for the metals, for the GDXJ ETF (a rough representation of the junior Gold mining sector) and for silver stocks (as represented by the SIL ETF). The current bottom is much more important for those seemingly perpetual laggards, the senior Gold mining stocks.
Gold steadily rose throughout most of world trade and ended near its late session high of $1666.22 with a gain of 1.23%. Silver surged to as high as $32.26 and ended with a gain of 2.26%.
A report by the London-based Lombard Street Research, which says the Netherlands is badly handicapped by euro membership, and as a result the Dutch Freedom Party has called for a return to the Guilder. Leader Geert Wilders has become the first political movement in the euro zone with a large popular base to opt for withdrawal from the single currency. The Freedom Party is a conservative populist party. We do not read Dutch, but the very fact that this information was only picked up by a few sources outside of the Netherlands shows you what managed news is all about.
Gold climbed up to $1664.27 in Asia before it fell back to $1639.54 by a little after 8AM EST, but it then rallied back higher in New York and ended with a gain of 0.13%. Silver slipped to as low as $32.12 before it also rallied back higher in New York and ended with a gain of 0.15%.
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