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The Fed gives the green light to gold rally

Commentaries & Views

(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.

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.

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