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Does Gold Not Subscribe to FOMC Minutes?


Bonds reacted down on the news, but gold and silver barely yawned.

The following are the latest daily summaries of my ongoing intraday coverage, providing context to interpret price action. Any prices listed are for a contract's current "front month." Their direction tends to correlate with any ETFs listed for each.

Today's Highlight: The FOMC minutes release is usually reliable for triggering a reaction. It's interesting that Wednesday's reactions were not uniform. Gold seemed not to notice, barely slipping any further after the intraday ranging, while bonds fell sharply.

Dollar Basket
Wednesday's knee-jerk spike down barely pierced Tuesday's low under 80.00, which was still too far above the decline's 79.80 target to be considered met. But a reaction up did interrupt the decline's momentum.

Mar Contract EC; (NYSEARCA:FXE)
Retesting Tuesday's ~1.3775 high reacted back down Wednesday to test 1.3725, but was otherwise unshaken by the day's news.

Apr Contract GC; (NYSEARCA:GLD)
A third consecutive session Wednesday of ranging narrowly intraday around 1318.00 has suggested the rally needs a dip to test the 1306.00 pullback limit, stretching the rubber band back to launch another upleg. Curiously, the FOMC minutes release didn't effect gold by nearly the degree that it affected bonds.

Mar Contract SI; (NYSEARCA:SLV)
Continued narrow ranging at 21.85 further undermines the rally's momentum, and suggests that the rally needs a pullback to refuel buyers, whether to 21.65 or to 20.70.

30-year Treasury
Mar Contract US; (NYSEARCA:TLT)
Wednesday's initial strength was itself an attack on 134-00, which attracted no reinforcements. The FOMC minutes reaction slid sharply down to 132-28, leaving no signal in play.

Crude Oil
Mar Contract CL; (NYSEARCA:USO)
Overnight highs testing the 103.00 area's resistance were still being tested through Wednesday afternoon. Back under 101.15 would start to signal momentum reversing down, potentially reversing down hard.

Natural Gas
Extending sharply higher overnight tested significant resistance at 5.95, requiring pullbacks to hold 5.89 for the pattern to next target 6.70. Sharply higher highs into the session tested 6.21 resistance that now requires pullbacks to hold 6.03.

Editor's note: Rod's analytical techniques are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He applies his techniques live intraday, primarily to S&P futures, at RodDavid .com.
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No positions in stocks mentioned.
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