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Gold Price Responds To Fed Minutes

Commentaries & Views

(Kitco News) - Release of the Fed meeting minutes yesterday indicated a lack of unity on the speed and aggressiveness of Fed rate hikes. Comments indicated a concern about the level of inflation, the key metric for higher rates. The Fed seems perplexed on the stubborn, below-target, inflation numbers, and the minutes showed a growing divide between the voting members on when and how aggressively the Fed should tighten. The dovish minutes spurred selling in the dollar and gold broke above the $1,287 resistance level and came close to testing the $1,300 print overnight. I would suspect gold will not push through the $1,300 level today, as traders will await inflation data due out tomorrow. A spike in the number will create possibly large liquidation in gold but a muted number should be enough to re-establish gold above the $1,300 level.

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