The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label fomc. Show all posts
Showing posts with label fomc. Show all posts

Sunday, June 11, 2017

Investors betting heavily on gold price going both up and down leading into next week's Fed FOMC meeting

In the latest Commitment of Traders (COT) report, investors speculating in the paper gold markets are putting down massive bets both for and against the gold price leading up to next week's Fed FOMC meeting that could determine the next move in interest rates.

Bullish speculators increased their gold bets by the largest amount on record. 
Speculators betting on a gold drop also made large increased to their own positions. 
Next week's major event is the FOMC meeting and conference and we expect that Janet Yellen will offer investors nothing unexpected. 
Asian gold demand has been subdued with a large rise in May Indian imports that we expect will fall in June as jewelers de-stock. 
With expectations of a lackluster Fed meeting, we see no reason to change our short-term position and we expect gold and silver to follow current momentum downwards next week. 
The latest Commitment of Traders (COT) report showed a week of speculators jumping into gold on both the long and the short side. On the long side, we saw a massive gross increase in speculative longs as traders added more than 50,000 contracts on the COT week - the largest increase in our records going back to 2006! 
Shorts were not sleeping either, as they increased their own positions for the week by more than 10,000 contracts. After a strong start to the week and a rise close to $1300, gold ended the week on a three-day losing streak and down around 1% on the week - which matched our call for last week. Silver followed gold down for the week with a drop a little under 2%. - Seeking Alpha

Thursday, May 19, 2016

Central bank jawboning: Gold smashed 3% despite the fact the Fed won't raise rates in June

An interesting thing happened in the markets yesterday, and is the crux of how the central bank uses rhetoric to manipulate paper markets without ever having to administer any actual policies.  On May 18 the Federal Reserve published their minutes from their April FOMC meeting (which was when they chose not to raise rates due to deteriorating economic conditions), and the records appeared to be almost the exact opposite of what Fed Chairman Janet Yellen reported during her speech on central bank policy one month ago.


Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the Committee’s 2 percent objective, then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June. - Zerohedge
Yet this was what Janet Yellen said just 22 days ago during her April speech (you will notice that the Fed minutes from that same date are in complete opposite of what Yellen reported).
"Economic activity appears to have slowed," despite job market gains, the Fed said in its statement. It also noted that household spending had "moderated." 
That tepid language greatly lowered investors' expectations for a June rate hike. Before the announcement, about 31% of investors called for a rate increase in June. After the announcement, expectations immediately dropped to 19%. - CNN Money
So how can the actual reporting from April 27 by Yellen be so different from the meeting's minutes and discussion on both rates and the economy?

Market manipulation.

The central bank knows that markets are controlled primarily by High Frequency Trading (HFT) computers that take news in their algorithms and instantly push through billions of trades to coerce markets in the direction they desire.  None of this has anything to do with factual data, but simply in lowering or raising price values for the dollar, gold, bonds, and stocks as they see fit.

And for two days now they accomplished their nefarious goal as gold was smashed over 3% and the dollar was artificially strengthened above 95% on the index.

But know this, the Fed minutes were not the sole catalyst for the crushing of gold and propping up of the dollar.  Prior to the meeting minutes, three central bank Presidents all went public on May 17 and jawboned that the June rate hike was a probability, and a tightening of credit was nearly a sure thing.

Yet if the Fed was now completely set on raising rates, why didn't they just do it yesterday rather than allude to waiting until next month?

Because they cannot raise rates anymore, and they have no intention of doing so.  The whole purpose of the press conferences were to manipulate the market for a few days, and suppress gold prices which were pushing the magic resistance levels of $1300.