FED Speaks; Equities, Gold Get Drilled
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
On Wednesday the Federal Reserve made their decision on interest rates, cutting 25 basis points, which was already priced into the markets. The reaction was the typical sell-off on the news, and equities and metals got hammered. This now brings the question: are the rallies in metals and equities over?
Because we can’t predict markets, Wednesday’s action was almost predictable. Other than the big sell off in equities and metals, there was no real technical damage done to the markets, and they should probably resume their current trends which is higher for both.
Although gold and silver both broke hard the last two days, they are both still in up-trends and should continue their moves higher. The key levels to watch are $1,410 in December gold futures and $16.00 in September silver futures. As long as those levels hold, we are buyers and look for the rally to continue.
Wednesday’s action appears to be just a blip on the radar screen. There are no guarantees that the rally will resume, but based on all the data we have, there is no reason to believe it won’t.