Opinion with Peter Hug
The Fed gives the green light to gold rally
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
(Kitco News) - Fed Chairman Powell indicated the Fed would do what was necessary to keep the economy rolling, adding new momentum to gold prices. Reading between the lines, he said: “We are your back-stop and will create whatever liquidity is needed.” Gold has held our $1,497 support area and is primed to close above our resistance point at $1,522. With the macro environment deteriorating: i.e., China ratcheted up tariffs today, Brexit, Hong Kong, and the weakness of European bank balance sheets, you can now add a supportive U.S. central bank. To say I am constructive on gold is an understatement. Silver is also beginning to lift and we continue to stay with our short term target of $18.50.