Bear raid today in the metals, as money was chasing stocks after the open, and the metals tanked when New York woke up into the 3 PM London afternoon fix.
FOMC meets this week and announces their decision on Wednesday. This meeting was expanded from one to two days by Mr. Bernanke last month, and is widely expected to facilitate in depth discussions of non-traditional Fed market activities.
The banks love to whack gold and silver prior to a market operation. This way if the metals rally, they have less opportunity to break out and run even higher.
"That day the U.S. announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake."
Paul Volcker, Nikkei Weekly 2004
Let's see what Benny and his Merry Pranksters roll out for the markets on Wednesday.
