Silver Trades With A Vengeance Ahead Of The FOMC’s Cirque Du Merde

 | Apr 27, 2016 01:42AM ET

Silver continues to trade DIFFERENTLY, in a positive manner that it has not done in YEARS. The potential for the silver price to explode in the very near future is all there. The shares continue to maintain their own positive tone and refuse to give up much ground on corrections. – Bill Murphy from GATA’s Midas report .

Nearly the entire precious metals investing community looks at the Comex options expiration and the Fed’s FOMC meetings with trepidation, as historically those two events have triggered a massive Comex paper attack on the price of the metals. Having both events back to back in the same week elicits even more fear. Of course, Goldman Sachs commodities clown, Jeffrey Currie, was on CNBC again today calling for $1000 gold. This guy has absolutely no shame about continuously making an idiot of himself with his price predictions for gold.

I exchanged emails with Bill Murphy on Tuesday morning because precious metals, especially silver, were unexpectedly buoyant in the morning. I wrote last week that the Comex bullion banks, based on the put/call open interest for May silver, were incentivized to make sure silver closed below $17 today for options expiry.

I emailed Bill asserting that “they” can’t keep the metals down. Gold spiked at 9:00 EST on no news or event that would have triggered a spike. The 5-minute graph indicates that it started to move up and then short-covering kicked in. Silver started to move and then there’s a red bar and silver pops. That tells me that they tried to hit silver to keep it from popping, but short-covering still kicked in (click on image to enlarge).