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FOMC Minutes' Drive Gold lower; Immediate Rebound

Commentaries & Views

Wednesday the FOMC delivered minutes from the last Federal Reserve meeting. The minutes were about the same as usual -- a lot of words that said nothing or confirmed how clueless the Fed is. When the minutes were delivered at 2 p.m. EST, markets had a very muted reaction, but gold found itself under pressure.

For 20 minutes, the sellers were back, and gold fell about $10. However, by the end of the day, gold rallied all the way back as if nothing happened. Gold sold off again overnight, testing Wednesday’s low before once again rallying back to near the unchanged line.

The metals now appear to have put in near-term highs and should be headed lower, with a high probability of testing the lows that were made three weeks ago. Bitcoin has stabilized, central banks are in full manipulation mode, and the currency wars are heating up.

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 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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