What Will Fed Mean For Gold?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.