Man, this crap is getting old…
Gold was trading near four month lows today after its biggest drop in seven weeks yesterday. Another bout of peculiar concentrated selling led to Comex halting trading in December gold futures twice yesterday, the fourth time in less than 3 months.
Minutes of the Fed’s October policy meeting suggested that the Fed may start scaling back the U.S. central bank’s $85 billion in monthly asset purchases at one of the next few meetings and this may have exacerbated the sell off. ‘Taper’ speculation remains rife despite the increasing likelihood of no taper due to the very fragile state of the U.S. economy.
Gold trading on Comex was interrupted twice, according to Nanex, which provides exchange data and summarizes high frequency trading activity. Thus, trading of gold futures were suspended twice yesterday and four times in the last three months as trading was also suspended on September 12, October 11, and now, November 20.
Nanex reported that about 1,500 gold futures contracts traded in one second at 6:26:40 a.m. Eastern time on Wednesday, triggering a $10 drop in prices and a 20 second trading halt.
Gold and silver have just been absolutely hammered on the Fed minutes release in which Fed MOPE claimed a taper is likely in the coming months.
Gold has plunged through $1250 to $1240, and silver has just broken support at $20 and now has a $19 handle plunging to $19.73!
The FOMC minutes have just been released and as the normal MO for the cartel, the monkeys were simultaneously released on silver-however the sharp brief smash has been met with a vertical upside move. Gold simply has made a vertical move to the upside with a vertical move to $1260.
Bernanke is scheduled to begin speaking shortly.
The action in the metals is due what can best be described as mass chaos & dissent among Fed members, with rampant disagreement in whether the Fed’s next move is to Taper, or for MOAR QE.
Full FOMC minutes are below:
Ahead of today’s FOMC statement (and in light of Eric Sprott’s 2nd installment of Do Western Central Bankers Have Any Gold Left?), we thought it a good time to recall a conversation between Alan Greenspan and others made at a December 1992 FOMC meeting in which key secrets were revealed regarding manipulation of the gold market by Western Central bankers.
As The Doc discussed with Eric Sprott in our recent interview, the US exported $4 billion in gold in December. Eric pointed out that $4 billion is 2.5 million ounces of gold exported in a single month, when the US produces 8.8 million ounces annually. Eric asked rhetorically where 2.5 million ounces of gold were coming from.
Courtesy Former Chairman Alan Greenspan and the minutes from a Dec 1992 FOMC meeting, we just may have the answer for Mr. Sprott…
Guest Post by Bill H.
The FOMC minutes were released yesterday and said that several participants thought that pulling the punchbowl at some point would be necessary. Fat chance! No, NO CHANCE! There is no chance now just as there was no chance back in 2009 and ’10 with all of the talk of “green shoots and exit plans”. Forget about anything and everything else, if the Fed steps back then WHO will buy the Treasury’s bonds? Anyone have an answer for this one? Anyone? Buhler?
As expected here at SD, the latest Fed minutes are pure propaganda claiming the Fed may end QE soon as the economy is recovering more quickly than expected. This is as even Walmart’s sales are crashing.
Cue the anticipated smash in gold and silver.
and….Gold & silver dropping vertically as expected. Unbelievable.
Full Fed Minutes release is below: