written by Christian A Dehaemer
compiled and edited by Dib Mossavi
Gold futures have fallen below $1,600.
As I was reading this, everyone seemed to have waited for the great Fed Chairman, Ben Bernanke to gather his papers and read his announcement.
By early afternoon then, everybody will know what was up his sleeve.
The market expects him to push interest rates down through some new Operation Twist.
According to the Wall Street Journal –
Analysts at Standard Bank forecast that the Fed will most likely extend Operation Twist, in which the Central Bank sells short-term bonds and uses the funds to buy long-term securities with the aim of lowering long-term interest rates and encouraging borrowing and investment.
Never mind that interest rates – including mortgage rates – are at historic lows …
Gold has priced in this idea over the past month.
But today nervous Nellies sold the metal down, applying the ‘buy the rumour, sell the news’ trading philosophy.
We are in the middle of our trading range, and the chart is telling us it wants to go higher (green line).
However, the short term depends on the day’s news … [continue reading…..]