PM prices hit yesterday on “supposed” fears that the clueless Fed didn’t announce enough MONEY PRINTING – though they did EXACTLY what was expected – and “deflation fears” when the Dow tanked mid-Afternoon in response to rumors of the long-awaited Moody’s downgrades, announced after the market close. Like the Fed announcement, no one can claim anything was “unexpected” about these downgrades – and, more importantly, such downgrades (in freely traded markets) are PM BULLISH.
And don’t forget the “supposed” reason for the “LEAP DAY VIOLATION” of February 29th – MSM interpretation of non-committal Bernanke comments of an end to QE. With Wednesday’s extension of “Operation Twist” and “ZIRP until at least late 2014,” plus quite obvious language that further stimulus is under consideration – that “argument” for why gold was smashed down from $1,790/oz is – and was - PURE BULL.
Today, the PPT-aided markets will aim to survive the week, before next week’s supposedly “important” meetings between Germany, France, Italy, and Spain – the “Big Four” insolvents of Europe.
Miles Franklin Ltd.