Wednesday was a day centered on the USD, and latest FOMC meeting
minutes, in which could be read the committee is ready "to taper or
end its purchases before it judged," or in Kathy Lien words: "this
means that Fed officials could end Quantitative Easing way before
they reach their 6.5% unemployment target," the analyst said. This
led to a massive buying of USD and USD denominate bonds, making for
the biggest rally in USD index in last 3 months, Bloomberg
This also means commodities over all were massively sold off, as
Gold closed in NY down -2.54% at $1564, last at $1561, off fresh
7-month lows at $1554, down for fifth consecutive day, while Oil
tumbled a -2.31% by NY close, leaving behind a double top pattern
at $98, while below neckline at $95, trading last at $94.17, off
fresh 1-month lows at $93.70.
"Getting hammered in a take no prisoners sell off, Gold has ended
bearish 8 of the last 10 days, with today being the worst daily
close from high to low of the year," says 2ndskiesforex.com founder
Chris Capre, adding: "This was following an inverted pin bar which
was doubling as an inside bar, along yesterday's bar which was
inside the prior large selling bar," he explains. "There are only
two more stops below at $1550 and $1525 with the latter being the
2012 lows," Chris concludes.
CRB index, which counts for 19 of most traded commodities, also
printed fresh 1-month lows below the key 300 level, though still
above current ascending trend line coming from early Nov lows.
Copper also lost almost -2% for the day, while iron ore instead,
some say because of its lack of speculative trading, stood at fresh
2013 highs at $160. US 10 year bond yields went down from
yesterday's highs around 2.05% to lows barely above 2.00% round on
save heavens demand.