Financial Management: Opportunities For Gold And Silver Shorting

In the March FOMC meeting statement, although the Fed deleted the phrase "patience", the tone of the statement was obviously partial to doves.

The Fed believes that the economy has slowed down since the FOMC conference in January, while significantly reducing target projections including GDP, core PCE and federal funds rate.

Based on this, the strength of the precious metals market has been successfully deleted from "patience" and pferred to the expectation that the rate hike point is likely to be postponed. This is also a key factor for the sharp rebound in gold and silver in recent trading days.

In the March FOMC economic forecast data, PCE inflation in 2015 was significantly reduced to 0.6% to 0.8% (1% in December last year to 1.6%), and the GDP growth rate was downgraded to 2.3% to 2.7% (December December was 2.6% to 3%).

It is worth mentioning that there seems to be some contradiction between the Federal Reserve's deletion of "patience" and its downgrading of US economic growth.

If the Fed believes that the economy is weak, why we should delete "patience", we can continue to be patient, but the Fed does not.

This may indicate that the Fed still has firm confidence in the steady growth of the US economy, and concerns about the recent slowdown in the economy, including the downgrading of the economic forecast data, are mostly aimed at smoothing the volatility of the financial market.

Although the Greek government has yielded to the pressure of European gold owners for some time ago, the reform proposals submitted have been approved by European allies.

The problem is far from over.

After a brief period of stabilization, the Greek government was exposed to the problem of money shortage, and its national debt was denied immunity and was not included in European QE.

In Greece, the bond market of the Greek stock market has plummeted, and the ELA authorized by the European Central Bank seems to be a drop in the bucket.

The European central bank intends to increase the ELA to 71 billion euros. On Wednesday evening, the European Central Bank's Governing Committee and the governor of the Greek central bank, said in a speech, said the European Central Bank agreed to increase the size of the ELA, and Greece has greatly reformed.

The system believes that the reform program can stimulate growth potential, and the banking sector in Greece is ready to face challenges.

Although FOMC has lowered US inflation and economic growth expectations, the latest data show that the US economy is still recovering steadily in the expansion of manufacturing and inflation in the United States, and there is still uncertainty in the outcome of the Greek negotiations.

The precious metals believe that the US Federal Reserve is confident of the US economy and that the US dollar index adjustment space is limited. This rebound may have reached the top. The opportunity for high position to sell gold is expected to come.

Silver prices follow the trend of gold prices.

Technically, silver continued to rise and entered the stage of concussion and finishing. More kinetic energy had subsided; the MACD index passed through the zero axis and the red energy column had subsided; KDJ indicated that the 1 Index entered the overbought stage.

The precious metals believe that as the Federal Reserve postponed the increase in interest rates, it expected that the good will gradually subsided, and silver on the technical indicators also entered the overbought area.