Greetings!, In what has been described as a "bloodbath," traders are recovering from the worst single day sell-off in gold over the last three years. The precious metals markets, and specifically gold and silver, are showing modest gains compared to yesterday sell-off, but sizable gains compared to any other normal day. The Brass Ring I get the sense that many traders feel as though they are sitting on a carousel pony and, up until yesterday's trading activity, came within millimeters of grabbing the brass ring. Gold near $1800 per ounce, the Dow Jones industrial average so close to 13,000, and the NASDAQ flirting with 3000. These three brass rings have eluded traders as they came so, so close. In this case patience is not so much a virtue as a necessity. The knee-jerk reaction witnessed yesterday came on the heels of a report by the U.S. Federal Reserve chairman to Congress. In his testimony it was not so much what was said, rather it was what was not said that prompted this dramatic sell-off in gold and silver. Now that some time has passed since Bernanke's testimony, realization has hit that even if there is less quantitative easing needed in the U.S., the European banking system is still fully committed to flooding that area with liquidity. That being said, I still maintain my bullish demeanor for the precious metals markets. As always wishing you good trading, Executive Producer |
