UPDATE: Thursday 9/21 at 7:17 a.m. EST, paper gold & paper silver dumps send the precious metals below support levels…
Thursday Morning Update:
Gold falls through $1300 on a low volume morning/big sell order paper dump:
Silver was also hit and pushed under $17:
Here’s the gold, silver and the US dollar on the morning after Hurricane Yellen:
Reported Yesterday Post-FOMC:
This morning there was this:
CME direct down since 11:30 pic.twitter.com/QUlvbHUaVr
— Lee Saks (@Lee_Saks) September 20, 2017
Other than a little set-up for this:
Cause, you know, 25,000 contracts in five minutes ($3,287,500,000 in paper gold) seems normal:
There’s This from Zero Hedge:
Today’s the day. On Nov 25, 2008 The Fed announced it would begin buying assets for its own account to save the world. In Oct 2014, The Fed ended its QE3 buying program but continued to reinvest the proceeds to maintain its $4.4 trillion balance sheet. Today, Janet Yellen announced the balance sheet will be allowed to normalize, with reinvestments slowed/stopped starting in October.
- *FED: HURRICANES UNLIKELY TO ALTER ECONOMY’S COURSE MEDIUM TERM
- *FED: JOB MKT STRENGTHENED, ECONOMIC ACTIVITY RISING MODERATELY
- *FED KEEPS RATES UNCHANGED, PLANS BALANCE-SHEET RUNOFF IN OCT.
- *FED FORECASTS STILL SIGNAL ANOTHER 2017 HIKE, 3 MORE IN 2018
- *FED REPEATS RISKS TO OUTLOOK APPEAR ROUGHLY BALANCED
- *FED SAYS FOMC VOTE WAS UNANIMOUS
- *FOUR FED OFFICIALS SEE NO MORE 2017 HIKES, UNCHANGED FROM JUNE (12/16 see another rate hike – market odds only 50%)
The Fed cut long-term rates:
- *FED ESTIMATE OF LONGER-RUN FUNDS RATE 2.8% VS 3% IN JUNE
So, up to $50bn per month reductions.
Many market participants appears to believe that The Fed has given investors plenty of notice that they would begin to unwind their balance sheet and so the actual event will be like “watching paint dry.” This seems more than a little disingenuous given the great levels of confidence embued into the actual QE process to save the world.
As one wit on Twitter noted, “If I tell you everyday for 6 months that I am going to cut off your head on 9/20… you are prepared, but how will you react on 9/21?”
We shall see.
Since the July FOMC Meeting, gold is the biggest gainer as the dollar loses ground:
And here it is straight from Yellen herself with all of the artificial flavors and perservatives a person could ever want in a can of Fedspeak Soup: