Make Kitco Your Homepage

Gold Awaits Fed Chair Powell's Debut

Commentaries & Views

(Kitco News) - Today may mark the pivot for gold’s next leg. We suggested last week that traders may lighten up on positions until Fed Chair Jerome Powell’s news conference following the Fed’s rate announcement at 2 p.m. EDT. The range of $1,307 - $1,322 has been sticky ahead of today’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 chair’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 Powell’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.

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.

Precious Metal Charts

Follow Kitco News

Holiday Promo Gold Bullion