Gold And Silver Prices Reverse Higher At Key Support Levels

The world’s major central banks may be shifting their tone subtly from “whatever it takes” to “we can only do so much”. Financial markets supercharged this year by the extraordinary monetary stimuli of the top four central banks are once again asking how long this can last. Friday’s stall of this year’s global stocks market rally was blamed by many on fresh policymaker chatter about when the U.S. Federal Reserve will or should start to wind down its bond-buying and money printing programs, or “quantitative easing”.

Everyone knows that “too big to fail” banks are bad for the economy.  Indeed, even top bankers themselves say the big banks need to be broken up. Now, top bankers are saying that the amount of liquidity which the central banks are flooding into the economy is becoming dangerous.

From GoldCore Does Bank Of England Hold €235 Million Of Irish Gold Reserves? Today’s AM fix was USD 1,667.75, EUR 1,246.82 and GBP 1,034.39 per ounce. Friday’s AM fix was USD 1,669.50, EUR 1,258.29 and GBP 1,036.25 per ounce.

SOMERSET, N.J. – A top U.S. Federal Reserve official waded into the sticky debate over global currency wars on Friday, warning that such beggar-thy-neighbor monetary policies would only hurt world trade and the economies that were involved. Philadelphia Federal Reserve Bank President Charles Plosser said central banks in many countries are adopting policies, often under pressure from governments, to control their currencies, calling it an unhealthy phenomenon.

Fed chairman Ben Bernanke is at odds with Brazil, China, and even the IMF over his policies. Please consider the BBC report Bernanke defends Federal Reserve stimulus measures Brazil has said US monetary easing to keep interest rates low and weaken the dollar has hurt emerging economies. And International Monetary Fund chief Christine Lagarde warned on Sunday of consequent asset bubbles developing in emerging nations.

By Jeb Handwerger:Rarely has such technical destruction been visited on stalwart sectors such as gold, silver and mining stocks (GDX). The silver charts reveal technical damage not seen since the destruction of 1984. It can only be conjecture that can account for a once in a generation obliteration of a once hallowed sector.