After initially popping to $34.20 and $1747 on the German High Court’s ratification of the ESM with conditions, gold and silver have slowly given up all their initial gains as the trading session wears on, as traders have realized that the court effectively voted YES to German participation in a Euro-bailout, but NO to hyperinflation.
Silver has been under pressure throughout the London session, and a new wave of selling emerged with the COMEX open.
Attention will now turn to tomorrow’s FOMC decision, and it looks likely gold and silver will fade this afternoon as traders begin to ponder ‘what if’ Bernanke disappoints and fails to announce monthly outright asset purchases Thursday as is widely expected by the market?
Gold has retraced it’s entire post German announcement gains back to the mid $1730′s:
We can almost guarantee that at some point over the next two days you will see an excellent entry point and stacking opportunity in the metals. Have your dry powder ready, and be prepared to respond professionally to price weakness by pulling the trigger and accumulating into price weakness. Better known around here as STACK THE SMACK!!