It's Fed Day - how will gold and silver react
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The Fed reports its decision on interest rates at 2:00 EDT which should create some action in the metals, equities, bonds and currencies. For now, we can assume those markets have priced in a 25bps rate cut and only a surprise up or down should create movement.
Based on the recent action in gold and silver, our expectations are that the metals should continue in the same direction they have been trending since September. The trend is lower, and rallies have been met with sellers.
We have no expectations of a trend change because of what the Fed does or says today. These announcements are already priced into the markets. Resistance is $1,520 December gold and $18.10 December silver. At this point, silver looks a little stronger than gold and is closer to reversing but till proven otherwise short is the right side.