Expect Gold, Silver To Wait For Fed
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
After putting together solid rallies and breaking out to new levels, both gold and silver will probably rest for the next couple of days. Both are in very bullish patterns and should continue seeing new money flow in, extending their rallies.
The big issue this week is the geniuses at the Fed and what decision they will make on interest rates. The bond markets have priced in at least a 0.25-point cut but still have to wait for the official announcement at 2 p.m. EDT Wednesday, July 31.
It is our opinion that the decision will have no long-term effect on the metals; however, the Street is still going to be cautious going into the news. Higher prices are on their way. We would expect to see $1,500 gold and $17-plus silver as just the next targets. There appears to be a lot more room to rise, but we will take it one level at a time.