13
Dec

Current Thoughts 12/13/16

From the Trading Desk

ALL EYES ON THE FED!  The much anticipated December FOMC meeting finally arrives tomorrow with 100% of economists polled on Bloomberg anticipating a rate hike.  While the decision tomorrow already seems like a foregone conclusion, activity this week has been muted ahead of it.  Today, the February gold contract had its smallest volume day (137,000 lots) since it became the active Comex futures contract a few weeks ago.  Coin and bar demand in North America is lackluster and the SPDR gold ETF continues to shed ounces, hitting 7 month lows this week.  Barring excessively hawkish commentary from the FOMC tomorrow though, gold has a decent chance to move higher from current levels.  It has lost $150 in the span of 1.5 months and has already priced in the probability of a rate hike.  Tentative support is coming in at $1,150 while psychological resistance at $1,200 is the level to watch overhead.

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About Doug Eberhardt

Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534

Disclosure:

Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.

All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.