Gold, silver and platinum loved the Fed on Wednesday; all three spiked right after the FOMC announcement. The Fed continued building upon the word’s largest legalized Ponzi scheme. There is no denying that the Fed has the common sense of a gnat. Drop them in the middle of nowhere, and they mat never find their way home.
Once again Wednesday, the Fed kept the bazookas working, telling Wall Street that they have an unlimited supply of paper and ink and will print money forever. This announcement sent the metals soaring higher, with gold, silver and platinum closing near their highs for the day.
Gold has now taken care of much of the damage that had been done during the two-week sell-off. Gold should run into a little resistance at $1,750 in the August futures. A breakout from there could lead to $1,800. Silver, like gold, popped nicely, rebuilding the bullish posture and looks destined for $19 in the September futures. Platinum is still a short; Wednesday’s rally was nothing more than an oversold bounce.
Remember, markets can change in any direction any time, and markets do not announce themselves. For now, gold and silver are in bullish formations and platinum bearish. We are still cautious because of the light trade and lack or liquidity, but are long gold, silver and short platinum.
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