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Expect Gold, Silver To Wait For Fed

Commentaries & Views

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.

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.