Fed Does It Again, Proving They Are Clueless
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Wednesday the Fed announced a decision on interest rates and once again there was no surprise; they did nothing. The equity markets were wild with a 300-point trading range on heavy volume and volatility. As history has proven, the Fed has no idea of what to do next; in other words, they are clueless.
The metals also were volatile, with gold trading in a $16 range between $1,335 and $1,351, closing near the high. Silver, like gold, was volatile by trading in a 20-cent range. This morning, both have given up the gains they had on Wednesday and are looking very weak.
We remain long-term bullish but short-term bearish and are expecting the selling to accelerate. Keep an eye on Wednesday’s lows; if those get taken out, the metals should move down to their next support level -- gold at $1,330 and silver at $17. Look for extreme volatility and lower prices.