Opinion with Peter Hug
Gold Price Ignores North Korea Meeting And Remains Focused On Fed
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Depending on your choice of network you can make your own judgment on the summit in Singapore between Trump and Kim. No matter what your slant, at a minimum the meeting should diffuse short-term geopolitical risk between the two countries. Focus is squarely on the FOMC meeting beginning today and a series of votes in the British parliament on the proposed path of Brexit. The Fed is expected to raise rates tomorrow, but this has been fully priced into the market. It will be the language on the glide path that will be analyzed. With the recent turbulence in the Italian bond market and other issues within the EU, it is likely the Fed may signal a pause through the summer and it becomes likely that the mid-terms may hold them off until December. We would expect some weakness into the announcement, a possible knee-jerk reaction lower and a modest rally, if the Fed does not surprise with a more hawkish stance. Gold continues to be bound by the $1,287 - $1,307 levels, but we suspect this range will be taken out this week.