The primary reason the U.S. Government and Federal Reserve intervene actively in the gold market is to keep to keep the price from moving higher in order the protect the reserve status of the U.S. dollar. Given that we know Russia and China are actively disabusing their foreign reserve holdings of Treasuries – quietly and now apparently more quickly – the dollar was in danger of breaching key technical levels to the downside and drop like a rock into the mid-70′s (USDX basis).

Janet Yellen saved the day with her non-transparent post-FOMC statement that suggested the possibility of higher rates in six months, which all know is total nonsense. However, mission accomplished as her words managed to spike the dollar index back over 80 and now the Fed via its agent bullion banks are trying smash the price of gold lower to “reinforce” the move in the dollar.

Gold lower <7.80> at $1,303.60USD/oz; Silver slips to 19.79 leaving the Gold Silver Ratio at 65.87 widening further. Oil +0.78 @ USD$99.97/Barrel.(The Silver Dr. 03/26/2014)

Note movements are based on previous days close.

Sincerely Philip Magnoli- My friends call me Don Filippo- The FX Specialist-www.donfilippo.ca

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