But today’s flows feel different.
It is almost impossible to predict tops in such extreme, unidirectional trends. Some periods can be more favorable for squeezes. Some others are more favorable for rangebound conditions and selloffs.
And such periods tend to change at the beginning of the New Year, at the start of Quarters, Months, or even after FOMC meetings.
As the US President announced he will officially announce his decision on the Fed Chair next week, Markets are looking back at yesterday’s Federal Reserve decision.
Higher rates for longer will be the way to go for the Fed until anything cracks, as the US Labor Market bounced back and the US economy is shining – Can’t justify many cuts with that.
Today marked a brutal stalling in rallies throughout the Metals asset class.
Gold was trading 6% higher than the day before the FOMC, only to give up those gains in a 10% flash crash.
Similar flows occurred in Copper, Silver, Palladium, and Platinum, all dropping by 9% to 11%.
By the way, Copper spiked to new record highs in yesterday’s evening session, reaching $6.52 per lb, but still lacking a more fundamental foundation to persistently elevated prices.
You can discover more on Copper fundamentals through this wonderful piece.
