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Fed Does It Again, Proving They Are Clueless

Commentaries & Views

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.

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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