from Wealth Wire:
It really has become a farce. A joke of the highest degree. Every time the US central bank Chairman comes out to announce a message markets react like crazy. Today was no exception; in fact, it was one of the most ridicule type of price moves. It is no secret that large traders have computerized their behaviour based on the words used during the speech. They sett buy/sell orders in real-time based on specific keywords. For instance, as a hypothetical example, as soon as the speech mentions “continue bond buying program” or ”stop bond buying program” an algorhythm decides to buy or sell dollars, gold, or some specific stocks. That is indeed what the financial markets have become: a casino.
The metals have been subject to the same type of trading behaviour. It became blatant once again today. In fact, it is the third time this week that we witness extreme speculation in the metals with prices behaving accordingly. Silver, for instance, saw its peak today at $23.20 and its lows at $22.15, a difference of almost 5% intraday. The charts below tell it all. Note that the peak on the charts was during the speech of Mr. Bernanke. A bit later, prices came down triggered by this sentence in the speech: ”a few participants expressed concern that conditions in certain U.S. financial markets were becoming too buoyant….
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