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Fed Speaks, Says Nothing; Metals Rally

Commentaries & Views

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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