Make Kitco Your Homepage

Gold Prices Continue To Look Constructive

Commentaries & Views

(Kitco News) - It has been some time since my last post, primarily because there has been little to say. The last time I commented, I was constructive on the gold market and believed we had put in the bottom for 2018 back in August. We have been one of the few houses that have remained skeptical on the Fed’s outlook for rate increases in 2019. We continue to believe the Fed will move in December but will likely tone down any aggressive rhetoric for 2019; instead policymakers will likely indicate future rate hikes will be solely data driven. This will create a more dynamic and volatile market in 2019. The first round of volatility that the market will need to overcome will be this weekend’s G-20 meeting, where all eyes will be on the U.S./China trade relationship. A reversal of tariff policy or at a minimum a hold on future tariffs should be positive for the base and industrial metals and should push silver higher, at least in relationship to gold. We favor a trade into the Fed December meeting. Looking for possible weakness into the meeting and at the announcement, but would buy this dip with the expectation of a rally into January.

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