Thanks to yesterday’s ‘Hilsen-Rumor‘ the final pretense that the Federal Reserve was actually going to taper off of its bond-buying program known as Quantitative Easing was dispelled.  This had the effect of buoying equity markets last night and into this morning while also putting a stiff bid under both Gold and Silver.  Of course, a stiff bid is not enough to materially move price and this is what we saw for most of the day as gold ground slowly higher as U.S. Treasury Bond yields ground slowly lower along with the USDJPY pair which ended the week below Â¥95 at Â¥94.17.

Gold climbed to $1391.50, it’s first close above $1390 in four weeks of trying, not that $1390 is technically significant.  It isn’t.  But, at this point Gold bulls have to hang their hats on something and this was a mild positive in a year of god-awfulness.  Silver was able to breach $22.00 and hold it, if just barely.

But, now that the market rightly understands that the Fed has been bluffing the entire time about backing off of QE expect things to begin changing rapidly.  A yen that is not being wantonly destroyed by the Abe government and Bank of Japan was nearly the last bullet the Fed had left in its chamber to fire at Gold.  It worked and Gold will have to move higher off of a lower base but it will build from here.  Look for a weekly close above $1422 next week and a monthly close above the May high of $1487 as reversal signals.  With markets this manipulated the only thing to do is wait for the right signal.  In Gold at this point it will be something external.