Fed Speaks, Says Nothing; Metals Rally
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
On Wednesday the FOMC minutes came out at 2 p.m. EDT, and the message was clear -- the Fed still doesn’t have a clue about what to do next. They continue to talk about good jobs, but weak inflation and a growing economy, which is simply a croc. Jobs stink, the middle class is still in recession and debt has spiraled out of control. After all this, the Fed indicates there will be a rate hike in December.
The news should have sent the metals lower but here they are rallying today after closing higher on Wednesday. Like the old TV show, “I’ve Got a Secret,” the metals apparently have a secret as well. Gold has rallied $35 since Friday morning. This indicates there is something beneath the surface troubling the markets, although they continue to close on record highs.
Gold should run into some resistance at $1,300 and silver at $18. However, the metals look great and are trying to push higher; the bear market is over. Gold and silver look to be buys on pullbacks as they are showing strength looking to start a new bull market. The new bull market is not far away. Equities are searching for a reason to sell and watching the metals, the selloff is not far away.