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Fed Does Nothing To Help Gold

Commentaries & Views

Wednesday the Fed did its imitation of the Three Blind Mice and stayed the course of clueless policy. Officials expressed concerns over trade, which is not an issue, and several other things which allowed them to keep rates where they are.

Gold’s reaction was to continue lower and show no signs that it will ever rally again. Of course, we all know that gold will find a level to bounce from; the only issue is what that level is. We are still watching for $1,180 as a key support level and a possible spot to buy.

Gold is in a consolidation pattern and looking to break out one way or the other. All signs point to a break to the downside. However, today gold is on support and a dead-cat bounce would be no surprise. The bottom line is the pattern that gold is in is ugly and the metal should head lower. All rallies to resistance, which is $1,240, should be sold until further notice.

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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