Make Kitco Your Homepage

Waiting to Exhale: Gold Keeps Its Cool Ahead of Next Week's Fed

Kitco News

Ed Note: We are proud to unveil our new mining page, an entire space dedicated to up-to-the-minute news, with exclusive industry interviews and all the relevant information you need, rounded in up in one spot. Who is merging? Who is Buying? Who is Digging? We got you covered!

(Kitco News) - Next week should prove to be interesting.

After weeks of excitement, gold has been relatively flat the past few days. The metal is stuck in a technical pattern ahead of the Fed and it seems any breakout will likely need to wait for next Wednesday’s Federal Open Market Committee (FOMC) decision where Powell and company are expected to lay out a series of interest rate cuts to help boost the economy. 

A 0.25% rate cut is fully priced-in while expectations of a 0.50% have drifted lower recently to around 17%. Next Friday also sees the latest U.S. labor report, another important U.S. dollar shifting event. August gold was last up $7.60 at $1,422.10.

On the topic of the Fed, my guest this week was former congressman and presidential candidate, Ron Paul.

“The current monetary system is broken, and the economy may be worse before it gets better,” Paul said. “It’s a system that isn’t workable, and this is the reason why getting out of this recession hasn’t been so good. We got into it because there was too much spending, too much regulation, too much printing money and too much alteration of interest rates,” he said in the interview.

This week I also caught up with U.S. Global CEO, Frank Holmes, from the floor of the NYSE.

Gold’s price rally has certainly helped mining companies perform better this year. More importantly, Holmes said the miners have become better managed companies. Holmes was in town celebrating the two-year launch of the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU). The fund out-performed popular indices such as the GDX, with year-to-date gains of 40% as of Wednesday. 

Holmes’ comments come as VanEck Vectors Gold Miners ETF (GDX) climbed 34% year to date, while gold bullion climbed only 11%. 

Meanwhile in other news, our in-house reporter Sarah reporting this week that $1 million dollars’ worth of gold and silver will be hidden throughout North America this summer, with round two of the real-life treasure hunt, GoldHunt, nearing its launch.

GoldHunt’s first event challenged the people of Edmonton, Vancouver, and Calgary to locate three hidden treasure chests, and three lucky winners walked away with $100,000 worth of gold and silver each. Now the organizers are extending that invitation to seven more cities in North America. So good luck everyone! 

That’s it for this week. Stay tuned next week for interview with Peter Schiff and Jim Rickards coming up! 

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.