Day 1 of Fed: Positive Factors Outweigh Negative For Gold - Bubba Horwitz

As day one of the year’s first Federal Reserve meeting kicks off, one veteran trader says gold looks like it may be setting itself up for a breakout. Gold futures continued to trade above the $1,110 level and managed to hit new highs Tuesday, with February comex gold futures settled up $15.20 at $1,120.20 an ounce. February comex contracts expiry was scheduled on Tuesday and contract have now rolled over to April. ‘If we can get through these levels here, there’s a good chance we could see $1,140-1,180,’ Todd Bubba Horowitz told Kitco News. Commenting from the CME floor, he said that there are more factors in favour of gold prices to move higher than there are factors to push it lower. 'I’d much rather be an owner here than a seller,’ he said. ‘[T]he major U.S. banks are all drastically short the U.S. dollar so I think that with the Fed probably not going to do anything, it’ll put pressure on the dollar, which will certainly push gold higher,’ he added. Despite the optimism on gold, Horwitz said his favourite metal is still silver. ‘I’m still a big fan of silver…it looks to go much higher,’ he said. 'I think that the ratio between gold and silver is the widest its ever been.’ March silver futures settled at $14.564 an ounce. Kitco News, Jan 26, 2016. (show less)

As day one of the year’s first Federal Reserve meeting kicks off, one veteran trader says gold looks like it may be setting itself up for a breakout. Gold futures continued to trade above the $1,110 level and managed to hit new highs Tuesday, with February comex gold futures settled up $15.20 at $1,120.20 an ounce. February comex contracts expiry was scheduled on Tuesday and contract have now rolled over to April. ‘If we can get through these levels here, there’s a ... (read more)

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