Dan Norinci: Bernanke tries talking down commodities

5p ET Wednesday, February 29, 2012

Dear Friend of GATA and Gold:

Market analyst Dan Norcini has this to say about today's action in the precious metals. He writes:

"My thinking at the moment is that [Federal Reserve Chairman Ben] Bernanke and Co. were watching the commodity complex begin to accelerate higher once again as a result of their free-money policy and began getting extremely nervous, particularly as energy prices were rocketing higher. This is an election year and one thing that the boss cannot stand for is having to deal with that pesky issue of unhappy drivers bitching about the outrageous cost of filling their gas tanks, especially since he and his crew are doing as much as they can to shut down drilling on public lands and offshore.

"If one basically states that the economy is doing better, not out of the woods yet but better -- and all the hedgies are leveraged to the gills because the Fed gave them the green light to do exactly that when it announced that it would keep this near-zero interest rate policy out to the end of 2014 -- then it is a simple matter of throwing a bit of uncertainty in that regard to generate a bout of selling. Toss in the same permabears as always capping at the highs of the day and the algorithms did the rest of the work as the stops were picked off."

Norcini's full daily commentary is headlined "Bernanke Tries Talking Down Commodities" and it's posted at his Internet site here:

http://traderdannorcini.blogspot.com/2012/02/bernanke-tries-talking-down...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.