We have well documented the fact that over the past few years, gold and silver are smashed on the FOMC release, with the smash nearly always culminating early Thursday morning.
The April FOMC meeting proved no exception, as silver has been smashed to an $18 handle this morning, and gold below $1280.
After support at $19 held throughout the overnight Asian and London sessions, silver smashed to $18.77 at 8am NY time:
Gold smashed below $1280:
We are looking for a reversal shortly, as the cartel pattern is for the post FOMC raid to finish early Thursday morning, with a reversal and rally throughout the afternoon Thursday and into the week close Friday.
Perhaps coincidentally, the “conspiracy theorists” among our readers would point out that today’s smash occurs on May Day/ Beltane, the illuminati high holy day of the year, and also essentially the anniversary of the 2011 silver drive by which saw silver smashed by $6, and marked the beginning of silver’s now 3 year long correction.
While gold is still $100 off its 2013 lows, silver is now only .25 off the 12/31/13 low, and only .75 from the entire bear market low placed last June.
Will the bottom hold?