Gold And The Fed
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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Over the last couple of weeks, our message on the metals has been the same -- they are in consolidation. One thing to remember about this pattern is that we have no expectation of change until it does, which means it breaks out in one direction or the other.
Because markets don’t announce their intentions, we have continued to monitor the market footprint looking for answers. Our bias remains bullish, but we are not involved within this trading. There will be a breakout but when and which way are the answers we are waiting for.
Today is Fed day, where the group of 12 Fed governors will tell us their decision on interest rates. Market expectations are that the Fed will remain accommodative, which has already been priced into these markets. There is talk that the Fed could talk about cutting rates instead of hiking. We don’t know if gold and silver will break out of their ranges today. However, the Fed news could be a catalyst, which we believe would mean higher.