Fed Next Focus For Gold
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Featuring views and opinions written by market professionals, not staff journalists.
Monday night the summit between the United States and North Korea took place and by all accounts was a success for a first meeting. In his press conference, President Trump was glowing with enthusiasm looking forward to a continuation of the historic talks.
Gold took the summit in ho-hum fashion and has stayed in consolidation, barely moving overnight, very consistent with the way it has been trading for the last month. Gold has been in a hurry to go nowhere as it waits for a reason to break out one way or the other.
Gold should break out of its range this week. There is no telling what the event or news that will break gold up or down, but it should break out one way or the other. Wednesday the Fed makes its announcement on interest rates and Thursday the ECB does the same.
We believe the move will be up and that the bottoms are in. The lows made in gold at $1,281 appear to be the support level and our first target is $1,330. There are no guarantees when making a trade, but all signs lead to a rally in gold.