Home InfoVault Market Reports FOMC Confirmation Hits Precious Metals - Market Report For 10-31-2014 - ModernCoinMart (MCM)

FOMC Confirmation Hits Precious Metals - Market Report for 10-31-2014 - ModernCoinMart (MCM)

FOMC Confirmation Hits Precious Metals - Market Report for 10-31-2014 - ModernCoinMart (MCM)
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Posted: 10-31-2014 10:49:00 AM

The hawkish tone of the FOMC press release along with confirmation that QE was not going to be extended brought about the expected reaction in precious metals on Wednesday afternoon as the market sold off.

The hawkish tone of the FOMC press release along with confirmation that QE was not going to be extended brought about the expected reaction in precious metals on Wednesday afternoon as the market sold off. Despite the FOMC’s pledge to keep interest rates at historically low levels, the selling in our market continued yesterday as the excellent physical demand was no match for long positions that were being liquidated and speculative short positions that were being initiated and increased.

Our market received another jolt overnight as the Bank of Japan surprised the market when they announced a large increase to their current QE program. The result was a sharp rally in the USD versus the Yen, a big rally in equities and a sharp sell-off in gold, silver and platinum. This morning finds gold trading below support in the low-to-mid $1,180.00s with a short term target of $1,140.00. Beyond that a look at $1,085.00 could be in the cards. Silver continues to see exceptional physical demand this morning, but a test of $15.20 appears to be where we are heading next.

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About The Author

Roy Friedman

This editorial has been prepared by Roy Friedman of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not prove to be true, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept the foregoing.

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