A potential game changer for gold, silver, euro, and yen is just ahead.  The game changer is the meeting of the European Central Bank (ECB).

Traditionally the ECB has towed the line of the Bundesbank inflation hawks.

Jean-Claude Trichet, the chief of ECB until 2011, kept monetary policy tight and interest rates high even though Europe was melting down and he had an example across the Atlantic of Chairman Ben Bernanke of the Federal Reserve dramatically easing monetary policy.

Mario Draghi, the former governor of the Bank of Italy, followed Trichet as the president of the ECB. Under Draghi, monetary policy has been more accommodative but interest rates have stayed relatively high.

The ECB meets on Thursday.  Expectations are for a rate cut of 25 basis points.  The markets are expecting a clear shift towards growth-related policies from the central bank.  There are also expectations of an extension of longer-term refinancing operation also known as LTRO.

If these expectations come true they are game changers for gold and silver.

In anticipation of these moves, gold has already broken out from resistance zone at $1607 – $1611.  Heavy buying is being seen in gold ETF (GLD) and silver ETF (SLV).  Gold miner ETF (GDX) is going along for the ride.

The euro is also pricing the foregoing moves by the ECB. Euro dollar ETFs (FXE) and (EUO) are also seeing heavy trading.  Gold and silver bulls are heartened by expectations that the Bank of Japan will also ease when it meets next week.  Heavy trading is being seen in yen ETFs (FXY) and (YCS)….Read more at Forbes