Chair Powell To Decide Gold’s Next Move
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Today starts with Federal Reserve Chair Jerome Powell giving testimony to the Senate Banking Committee. His written statement will come out at 8:30 a.m. EDT, which will create a reaction in markets and especially in gold, bonds and currencies.
The markets have been jittery waiting for the next two days of the chair’s testimony and as always are trying to get in front of what those comments will be. Gold has been struggling but through it all has managed to hold support, which indicates that it wants to go higher.
After the Street reacts to Chair Powell’s statement, traders will wait patiently to hear how he answers the questions. If he burps or passes gas, the markets will react, but the bottom line is simple, and the footprints suggest that gold is going higher.
Until gold has a daily close below $1,380, we are buyers and targeting $1,500 as the next huge resistance level. Of course, anything can change. Gold can break down, but for now we are long and looking to buy more.