Opinion with Peter Hug

Fed Raises But Speaks Softly

Metals prices surged after the Fed announced a quarter-point increase in interest rates. The move was likely a classic sell-the-rumor, buy-the-fact trade, as the Fed continued to forecast modest increases in rates for the balance of the year. Fed Chair Yellen seemed somewhat dovish in her tone, but the Fed is expected to continue raising rates throughout 2017 and into 2018. The question will come down to speed, not direction, and here the Fed may step back in the short term until fiscal policies become more defined. Gold has a better technical look to it, but a close above the $1,237 level is required to re-set bullish momentum. $1,218 suggests as the initial support line.

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 precious metal products, 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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