Yes, it takes two to tango, and we still need to see what will happen tomorrow with our friends at the FED, most likely nothing pretty, however, gold is approaching zero-contango AKA backwardation: the price of future contracts is trading lower than current price. More and more people are waking up to a scenario for a future short squeeze, delivery problem from Comex or even default if they will find it impossible to settle in cash? Is a possibility that we need to watch close. Also, the silver market is adding long positions more than any other metal (percentage-wise) and that’s another bullish sign. After June data Ben is probably going to mention the XXX word “TAPER”. This word is able to trigger real taper-tantrum in the markets, spike in yields and downward pressure for PM’s. I will not be surprise to see gold and silver start the day positive, have a reversal correction at 2 PM when the FOMC minutes are released then recover a little bit maybe holding ~1200$ and ~19$ levels.
stay tuned when the music starts tomorrow afternoon…