Further stimulus "less inclined" as US economy "gradually improves". http://www.reuters.com/article/2012/04/03/us-usa-fed-minutes-idUSBRE8320T820120403 Pfft.
In reality it's probably a parameter called "stimulusLikelyhood" in a trading bot being changed from 0.68 to 0.66 that causes the changes. Just another data point for the automated markets.
A bunch of price jumps and drops in the last 24 hours. What's interesting is that silver is up 70-80 cents (up to 31.70 or so from 31 flat AUD yesterday), but gold is actually down by a few bucks (under 1600 AUD again now). Usually they move more in sync with each other. I should pick up some gold ... anything under 1600 AUD is a buy for me.
Have to agree. In the medium to long term inflation is inevitable and nothing I've read since $1900 has convinced me to do anything but keep adding when I can.
They can say no more QE3,and then change their minds. What they say means nothing. And I can't see anything to make me think that things won't get allot worse.
In a debt based system the monetary base HAS to increase at an ever increasing rate... it is not a choice the FED makes, it is a logical flow on based on fairly simple maths
Of course there will QE3, 4, 5..... Did the Fed explain how the system will operate without further QE? Europe can not even buy there own bonds, China is a net seller, Japan started running trade deficit and under pressure its own debts. So who will buy the new bonds the Fed currently buys 70%? Zimbabwe?
What pisses me off is the fact that we've had similar FOMC minutes / Bernanke's announcements hinting 'no further QE until necessary' that had caused massive gold sell-off in the last few months. The $80 smack down on leap day came to mind. So, you would naively think that "no QE" factor has been priced in the gold price. And really, there's nothing new in the minutes that the markets don't already know. It's beyond me that the market seems to press the sell button everytime you've got these kind of announcements. Next time they're releasing the FOMC minutes, I'm shorting gold/silver for a short period, cos 99.999% of the time the PM price will plummet.
...thus falling into their evil trap - what's the bet they hint at more stimulus next time just to catch all the shorters?
I won't go into the trade blindly; put the stop loss at $5 more than the trading gold price before the announcement. The potential reward is the crazy $20-$30 or if you're lucky $80 smack down as happened on last Feb. Or are you saying that the better game is not to play?
There was allot of anticipation by markets that the fed would hint at QE3 in the minutes which is really the only thing supporting prices right now. The longer they put off QE the longer precious metals will correct, you see precious metals are also on a lifeline of there own somewhat now being almost totally dependant on further QE to support current or higher price levels. But what's interesting is if gold drops the USD will start to rise which is not what the US wants especially during a recovering economy. The market obviously expects at some point QE or some other form of easing will be announced in US/EURO/UK. What has not been discussed is the coming future easing measures in Asia specifically in Australia where the RBA have said last year intervention in FX markets is possible(ie printing or some sort of expansion of money).
More: http://kingworldnews.com/kingworldn..._Minutes,_Gold_Manipulation_&_Fools_Play.html More: http://silverdoctors.blogspot.com/2012/04/6375-milion-ounces-of-paper-silver.html
There is such a disconnect between reality and the markets that any person who isn't trying to save every cent in physical commodities is just handing money to thieves. I'd even be picking up coils of copper at Bunnings if I had somewhere to store them away from prying eyes. In 5 years time this will be like looking back at pre-decimal prices.
