The Battle For $1,300 Gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The way the metals have been trading, they shouldn’t be entering any beauty contests; they have been ugly. Now that gold has broken key support of $1,310, trading down to $1,302 on Tuesday, it’s time for the gold bulls to buckle up. A break below $1,300 brings the $1,240 level back into play.
Today at 2 p.m. EDT, the Fed and Chair Powell will announce their decision on interest rates. There is no hike planned for today. However, with Tuesday’s inflation data, we could see a surprise hike, which would catch the markets by surprise.
One thing you can bet on today is there will a lot of volatility and price action. The metals have been weak, with gold weaker than silver, and today’s news will put the metals to the test. No matter what the news, look for silver to continue to outperform gold and for gold to fight to hold $1,300.
Keep those stops tight.