Another useless trading day as pretty much every heavy hitter is biding time waiting for tomorrow’s Fed report. Yea, we got the usual squeeze the shorts; crush the longs; go to sleep in 3 …. 2…. 1 …. drift into the close today. Thanks for showing up.
And lest you think gold has been a nightmare to trade lately, it could be worse; you could be trading EURUSD which had a whopping 73 pip range [as I write] and is firmly stuck between 1.30 and 1.3250 for what seems like forever. You want to see real market manipulation? What’s going on in the Euro makes gold look like child’ play.
All eyes are on The Bernank as he decides tomorrow whether to print faster or slower for the next few months. Expect nothing, range wise, into the minutes which will be released sometime around 1:15 P.M. [Chicago time]. At that point we are either on our way to testing 1612 – 1600 or about to melt up to the 1670 area; depends on how aggressive the Fed wants to be in
printing money monetizing upcoming Treasury auctions.
My best guess is that they stay right where they are at, but include some language that gives them wriggle room if things get “worse” [stop laughing]. At some point the Central Planners come in and let loose with some heavy sell orders and gold gets smacked down. Sell stops get set off; the charts look horrible; they sit back and congratulate themselves on a job well done.
Of course, maybe Weimar Ben likes his job and figures Chalky is going to need a little help in November, so he speeds up the printing press. Hey, it can happen, and if it does watch the glorious fireworks on the upside.
Regardless, the aftershocks will probably last at least for the rest of the week and into the next before the market fixes its eyes on something else. We’ll see what happens.
Have a good day everyone.