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Metals supported despite Hawkish Fed

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,

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