Equities Make New Highs; FOMC Minutes At 2 P.M. EST
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Tuesday saw the equities make new highs across the board, which wasn’t that surprising in a holiday week. The dull drift higher should be with us until the end of the year. Everyone is ignoring the rate hike and the amount of debt being created as if it doesn’t exist. We know from history that debt is the No. 1 killer of markets and this time won’t be different.
Interestingly enough, gold, silver and Bitcoin all managed gains on Tuesday. Gold and silver didn’t recover all of Monday’s losses but the fact that they were higher shows a bullish sentiment. Metals were also higher in the face of a stronger dollar. Although the dollar closed lower, it was much higher while gold and silver were rallying.
Wednesday should be painfully slow; however, the FOMC minutes come out at 2 p.m. EST and could be a market mover for gold, silver, bonds and the dollar. The lack of any volume is a concern and the moves can be skewed for those reasons. We are buyers of gold and silver on support levels and will continue to do so until gold falls below $1,260 or silver falls below $16.60.