Gold & Silver Rally Ahead of FOMC

Gold and silver are both strong this morning ahead of the December FOMC statement release at 12:30pm EST. 
Silver is up .40 to $33.50, and gold nearly $10 to $1720.  If the Fed does indeed announce an expansion of QE to infinity at 12:30, look for a sudden raid in gold and silver just prior to the release, much like the flash crash in the metals 5 minutes prior to the announcement of QE∞ in September

Silver strong ahead of FOMC statement but still capped at $33.50:

 

Gold is trading at it’s highest level of the week, but still capped below the crucial $1730:

 

Regardless of the Fed’s announcement, expect extreme volatility in both gold and silver today upon the FOMC release, as well as during Bernanke’s 2:15pm press conference.

Comments

  1. This just feels like the beginning of something good, we are due……just sayin’

  2. there are a HUGE amount of sell orders between 33.33 and 33.50

    • Just wondering where you are able to see the sell orders?   Are you saying there’s pretty much no chance we’re getting through $33.50, regardless of the announcement?

      With all the manipulation it seems almost impossible to get on the right side of the trade, so the more information the better. 

      Any insight would be much appreciated! 

    • Yes you can view limit orders, I think I got the link from one of the Doc’s articles about a year ago but can post it when I get home.  SLV is trying to get through 33.35 now, but all the sell orders have to filled to move to the next higher up sell point and so on.  I stopped playing the silver games about a month ago, sold mostly all of it to buy MolyCorp when it touched close to 6.  Dont get me wrong Silver is great, I dont want anyone here to fall off their rocker.  After watching many of the guys I preached silver to a year ago get 50-100% returns in 12 months, I saw the 10% I made on silver in a year as a wasted effort.  One day the dollar will fall but that day is not near.  We may get a gain today but a sell off will come.  Will we see $50 again one day, sure, but not soon enough for the guys that bought in the 40s over a year ago.  There is too much Raid this, pop that, and too little price movement.  Just not for me yet. 
      Here is one site to view options http://yahoo.optionetics.com

    • All I know is that silver will not go lower than 30$ per ounce because if it goes lower than that, then it won’t be generating enough profits in terms of dollars for the miners. If you draw a line from the 2008 low price to the recent 2012 low price which is about 27$ per ounce, you’ll realize that silver never went lower than that. That line represents the amount it cost to produce an ounce of silver.

    • Most miners don’t apply a cost to silver since it is a byproduct of the 160,000 tonnes of copper mined. If silver was higher you would see more silver operations which is hope. Derivatives dont help but volume is a killer that counts the same ounce repeatedly which may get traded many times in a trading session. By nature volume will always move price down more than up. Selling most always leads to more selling, and buying triggers selling more than buying. Whatever your views, this is very important to understand in these computer controlled markets.

  3. Wow Doc, you’re the man! You called the raid “Just before the announcement”……..boom, there it is!

  4. Raid Just commenced!

  5. But now, gold and silver went lower. Right now, gold is at about 1696.80$ per ounce while silver is at about 32.48$ per ounce. I guess this is the right and perfect opportunity for me to buy more precious metals during this weekend especially when I have received more cash today! :)

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