From the Trading Desk
While the FOMC delivered the rate hike that the market expected last Wednesday, the language that was conveyed during the meeting caught participants off guard. Specifically, the Fed expressed a hawkish outlook in 2017 with three instead of two planned rate hikes and a longer term rate target moved higher to 3.00% from 2.875%. The USD rallied post-FOMC and the USD index touched highs it hadn’t been at since 2003. With the USD surging, gold gave way and sold down to the low $1,120s on Thursday of last week. The selling pressure on the precious metals complex only let up after this Friday headline: China’s navy seizes US vehicle in international waters. Gold immediately shot up and finished out a poor week’s performance with an up day. For now, the range in gold is defined with support at $1,120 and resistance at $1,150. Silver has found bargain buying under $16 while platinum has found the same on any move down to $900 thus far.
Remember, they are the Fed and deja vu for gold and markets come January. Gold started to fly in January and the markets tanked.
Related posts
About Doug EberhardtDoug 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.