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Contributed Commentaries

Metals supported despite Hawkish Fed

Jonathan Da Silva

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

Even with the most hawkish Federal Reserve in years, gold held support at $1,915 yesterday and is once again trading just below the $1,935 level this morning. Silver bulls are keeping the metal-supported at $24.30, despite the volatility. Emotions aside, the price action in monetary metals remains neutral to bullish.

This trader continues to favor the probability of a move toward $1,965 gold, especially with a close over $1,935. Conversely, a close below $1,915 would merit the re-evaluation of short-term long positions. Platinum printed yet another low yesterday intraday, yielding to weakness after bulls’ failure to push the metal into four-digit territory, as suggested was the probability earlier this week.

U.S. equities were also exposed to knee-jerk volatility post-Fed minutes yesterday. The below shows a broadening wedge formation on a 5-hour interval that seems to be developing in the congestion area highlighted earlier this week. A breakout of the wedge to the topside would indicate that the trending move off the winter lows is ready to continue.

Notoriously hawkish Fed president James Bullard is scheduled to speak this morning; knee jerk volatility should be expected as the market remains sensitive.

Thanks and have a great day,

By Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
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.