We suspect today’s trading action in the metals was NOT what the bullion banks had in mind, particularly after building up ALL-TIME-RECORD short commercial short positions in silver.
Will A Commercial Signal Failure and A Massive Short Squeeze Come Next?
Gold and silver prices have been under attack over the past 48 hours as the Fed is suddenly hell-bent on forcing a March rate-hike narrative down the market’s throat. Odds of another rate hike by the Fed in March have surged from 20% last week to over 82% today.
After breaking through the 200 Day Moving Average and reaching $1263 early Monday, Gold prices traded as low as $1237 this morning, but have rallied this afternoon all the way back above $1250!
Silver was knocked from $18.55 Monday down to $18.15 last night, but has amazingly retraced the entirety of its losses in today’s session, with a last of $18.50!
Both metals’ refusal to break down in the face of what now appears to be an imminent Fed rate hike in March, along with Trump’s $1 Trillion in Infrastructure Spending comments in his Speech to Congress Tuesday evening are impressive, and signal that LARGE buyers are now buying ANY and ALL dips in gold and silver.
Today’s trading action in the metals also gives validation to London Trader Andrew Maguire’s comments last week that a physical floor has been placed under the gold and silver markets due to massive outflow of physical bullion, and that the system faces a heightened risk of a price reset over the next 90 days. Maguire went so far as to say that should $1232.30 becoming support materialise and gold head back towards $1250, such a stair step rise in PHYSICAL support poses a serious threat that threatens a commercial signal failure.
We suspect today’s trading action in the metals was NOT what the bullion banks had in mind, particularly after building up ALL-TIME-RECORD commercial short positions in silver.
Will a commercial signal failure and a massive short squeeze come next?