Help! I'm Falling And Can't Get Up
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The new cry for metals is “Help! I have fallen and can’t get up.” Across the board, metals are taking a beating and need the alert button as they call for help. Gold, copper and silver are all at the bottom end of trading ranges and could be in danger of breaking down here as we wait for Wednesday’s Fed decision.
Interestingly enough, the suppression of the dollar by the Fed and central banks around the world have not helped the metals, indicating there may be more problems than we can see on the surface. A weak dollar should be bullish for the metals, but both are on near-term lows.
Wednesday’s Fed decision should go a long way in deciding what’s next for the metals. In its history, the Fed has never made the correct decision when policymakers are trying to exit the mess they made. This time won’t be different, and you can bet on a mess. History continues to repeat itself and the Fed continues to be clueless