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What Will Fed Mean For Gold?

Commentaries & Views

Today is Fed day and the question to gold traders and investors is what does today’s meeting mean for gold? The short answer is nothing. Gold is trending higher and looks poised to make a run to $1,275, if not higher.

Certainly, the Fed announcement today could have a short-term effect, creating a big bounce or sell-off, but in the long run the trend is up and nothing the Fed does today will change the trend. Trading and investing are always about the money. Buyers have been the dominant players in gold, and we expect that to continue.

Fed officials have painted themselves into a corner and will raise rates today despite the speculation. With a strong economy, if the Fed doesn’t hike, that will send shockwaves through the markets, indicating there are more problems than anyone cares to know. The bottom line is to follow the money and for now the money is buying gold.

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.