precious metals flash

The bears reigned throughout the day yesterday, in the aftermath of the FOMC minutes. Right from the first minute of European trading Gold was pressured lower. It first fell through 1640 and later also through 1630, triggering sell stops with a sweep down to 1623.80 at the speed of light. New York continued selling it down to a low of 1612 right before Comex pit trading closed, from where it finally bounced. Trading volumes were 25% higher than on the previous day and the next two Commitment of Traders Reports are expected a large drop in net longs. Silver got in jeopardy of the bears and was trashed down to 31 USD. Further buying of short dated puts suggested that attacks at the 1600 USD Gold and 30 USD Silver level might be the next to be expected. This is the last day in trading before Easter and the NFP number is released tomorrow with a closed metals market. Any reaction to this number will be seen on the Asian open on Monday. It is important to prepare yourself for a possible volatile start, where the market will probably gun for stop losses in thin trading conditions.