Fed Does Nothing To Help Gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.