Gold Awaits Fed Chair Powell's Debut
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Today may mark the pivot for goldâ€™s next leg. We suggested last week that traders may lighten up on positions until Fed Chair Jerome Powellâ€™s news conference following the Fedâ€™s rate announcement at 2 p.m. EDT. The range of $1,307 - $1,322 has been sticky ahead of todayâ€™s announcement. The Fed will raise rates by 25 basis points today, but there continues to be disagreement on whether Powell will signal two or three more planned rate hikes in 2018. I see no upside in Powell locking down a number, but think he may continue the old chairâ€™s prologue, that the Fed will continue to normalize rates as economic conditions warrant. The growing deficit, potential trade war and North Korean issues, certainly not settled, should soften Powellâ€™s hawkish impulses. We will have to wait to see if gold reacts with the same movement of past rate hike announcements. An initial sell-off, with a surge after the dip. A sell-the-rumor, buy-the-news effect.