Gold Looking To Break Out
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Yesterday we wrote that gold and silver would probably be quiet and flat until after the Fed reported on Wednesday. It now looks like the metals are trying to get a jump on the Fed and have started to rally early.
Friday saw gold trade as low as $1,412 and suddenly the metal is back over $1,440. There was a late-day rally Monday with some early morning follow-through today. The key to watch in gold is the $1,450 level, since a close above would signal $1,500 is not far behind. Silver looks like it wants to join the rally and push through $17.
Expectations are the Fed will cut rates by 25 basis points; that would be bullish for the metals. Falling interest rates make metals more attractive. Tie in bullish technicals with a clueless Fed and we should see higher gold and silver prices.