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Countdown to Powell presser

Commentaries & Views

If gold can cross and close over $1,875 this week, a follow-through move to $1,900 and then $1,920 becomes probable. Unfortunately, there is no way to know for certain whether the market will throw a tantrum following today's FOMC; the flip side scenario is likely a flush back down to $1,850 at the least, and $1,820 would not surprise.

Whether it began yesterday, is starting today, or will begin in the next few days following a pan sell-off, the case for a coming relief rally in metals and major US indices remains intact. However, failure to show signs of a quick reversal following a sell-off would force market participants willing to "call the FED's bluff" to re-evaluate.

Traders should expect knee-jerk volatility this afternoon.

Platinum has continued to push higher, but bulls should expect resistance around $985. A "buy the dip" level in Platinum may now be around the $950 level.

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