October 14, 2019 – The Federal Reserve on Friday announced a new program to buy Treasury Bills at the rate of $60 billion per month, but the news did not make an immediate impact on metals’ prices. The gold price fell $17/oz last week, and silver ended essentially flat.

The new Treasury purchases will come on top of the Fed’s repo market operations – now extended through January.

The Fed’s repo market intervention provided short-term liquidity for banks who needed more cash at the end of the 3rd quarter. Officials said it would be a modest and very short-lived program. But it has now been used to inject hundreds of billions into bank reserves, and this will continue for several months at least.

The Fed is attempting to persuade markets that repo market operations do not signal more serious troubles. But the mainstream financial press has not seen fit to challenge the Fed’s narrative.

Investors also appear complacent thus far. Demand for safe havens such as gold has been muted.



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