Today's post is simply a compilation of things to read and consider while we wait for tomorrow.
First, how about some charts? Today's action can be written off simply as algos trolling for stops to exploit in a weak volume environment. Gold's 100-day MA is near 1706 and this should act as support. Silver's 50-day MA is 33.05 and the action today was gamed around it. I fully expect the current, short-term ranges to hold on both metals to hold until Noon tomorrow when the Fedlines are released.
Speaking of the Fedlines...I have no idea what the Fed will announce tomorrow. Though, ultimately, they'll need to replace all of the Twist funds (and then some), no one can say for sure how much they'll announce tomorrow. And you can bet your ass that if the total comes out even a billion less than $85B, the immediate reaction will be to try to hammer the metals down. Regardless of the fact the $70B/month is still $840B/year of unsterilized QE. The Cartels will sell and attempt to set off an HFT waterfall. And don't believe anyone who tries to say that The Fed will announce a continuation of Twist and sterilized QE. Do you recall the video below. We first posted it back in August and it clearly shows the changing nature of the Fed's balance sheet over time. They are out of short-term paper to sell/exchange for long-term. Done. Gone. Finished. More QE is the only bullet left to fire.
And just in case you have been misled into believing that the economy is improving and, thus, additional QE is unnecessary, please read this from Goldman. (And hopefully, by now, you realize that QE isn't about "the economy" anyway.) https://www.zerohedge.com/news/2012-12-11/goldman-q4-gdp-forecast-10-following-trade-data
Here's a very helpful new article from JS Kim. Please take the time to read it. https://www.zerohedge.com/contributed/2012-12-11/essential-newbie-guide-buying-gold-silver
And here's a good piece from Jeff Nielson: https://www.bullionbullscanada.com/gold-commentary/26030-when-prices-have-no-meaning
If you haven't yet, you definitely need to read this piece from Alasdair Macleod. It made the rounds yesterday but I'm relinking it here because I feel it is so important: https://www.goldmoney.com/gold-research/alasdair-macleod/gold-futures-market-heading-for-crisis.html?gmrefcode=dollarc
That's all. I'm so bored that I'm headed out to get a haircut and do some Xmas shopping. Hang in there and try to have a great day.
TF
