Greetings!, This week precious metals investors and traders experienced yet another roller coaster ride. Beginning with the elections in Greece on Sunday followed by the FOMC meeting and press conference held on Thursday, we saw the precious metals fall under extreme pressure. It had been my long term assumption that many traders, believing that the Federal Reserve would initiate another round of quantitative easing (QE3), began to buy the precious metal, thereby factoring that belief into the marketplace. One day prior to Fed chairman Ben Bernanke's press conference, the U.S. equities markets rallied on the assumption that there would be some sort of announcement of further monetary easing by the Fed chairman. Buy on rumor, sell on fact This popular saying seems to be shaping the underlying tone of both the precious metals markets and the U.S. equities markets. Downside pressure occurred when the Fed chairman announced merely a continuation of the Twist program. The continuation of this program by the Federal Reserve was interpreted as a tepid approach to a critical situation requiring much more action than just a simple continuation of a program believed to have very few economic teeth to bite into the problem. As such we saw the premium that had developed in both gold and equities quickly vanish from the marketplace, which resulted in a minor meltdown once again in the financial markets. What will occur next week is anybody's guess, but real concern of deflation continues to grow in the marketplace. The issues that have been fueling the advance of the precious metals markets still remain as real and as prevalent as six months ago. However, we have seen gold once again trade as a risk on risk off investment as opposed to a safe haven investment. As always, wishing you good trading Executive Producer | 
Silver Chart
