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Simple explanation

rmpsrpmsrmpsrpms Posts: 1,895 ✭✭✭✭✭
in Precious Metals
Can someone give me a simple explanation as to why Ag went up 1.8%, and Au down 0.4%, today after the Fed meeting?
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  • CuKevinCuKevin Posts: 1,722 ✭✭✭✭
    Au and Ag were both up today. The FED did not raise interest rates, which they have made very clear they want to do once they believe the economy is healthy enough. Since they did not, this suggests they believe the economy is not yet strong enough to support even another quarter of a percent interest rate increase.
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  • derrybderryb Posts: 36,779 ✭✭✭✭✭
    they reacted right on cue with the announcement yesterday at 2 pm, both shooting up. Now they are just trading sideways. They will generally continue to move together. The spread difference you mention is not abnormal for sideways movements with one usually correcting more than the other after a big jump. Just means gold reacted more than silver yesterday.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • mariner67mariner67 Posts: 2,746 ✭✭✭
    No body knows
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  • VanHalenVanHalen Posts: 3,945 ✭✭✭✭✭
    Originally posted by: rmpsrpms

    Can someone give me a simple explanation as to why Ag went up 1.8%, and Au down 0.4%, today after the Fed meeting?






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    Au is up ~3% since the news with ~Ag up almost 5% in the same timeframe. The Luck of the Irish are with Ag today!



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  • TwoSides2aCoinTwoSides2aCoin Posts: 44,283 ✭✭✭✭✭
    The market moves… even as people sleep.
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Both had been moving in increments of 4 days between tops and 4 days between bottoms. Wed/Thursday coincided well for a 4 day peak. And today for a 4 day trough.



    Gold to silver ratio may have finally run into fresh resistance. Silver had been under-performing gold since spring 2011, and in particular for the past year. But the GSR last month tagged the October 2008 crash high of 83.8....a 7 year event. That might signal time for a rest after a 5 year rise from 31. Silver has outperformed gold by a lot in the past 3 weeks, so this extra strength into the FOMC meeting doesn't seem out of line.



    Both silver and gold have retraced some of those Wed FOMC gains. GSR has pulled back to back-test the 1 year coil and breakout pattern. But this GSR retrace from 83 to 78 might put that 5 yr run in jeopardy. A lot of 7-8 yr patterns in currencies, commodities, and other markets have been finishing up 2015-2016. The battlegrounds are changing.



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  • TwoSides2aCoinTwoSides2aCoin Posts: 44,283 ✭✭✭✭✭
    Thanks RR. Your view is important to me.
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