From the Trading Desk
Yesterday’s Federal Open Market Committee minutes failed to provide any sparks in what has turned out be a boring week of trading for the precious metals. Commentary of note from the FOMC included the following: several officials said the decision to wait for a rate hike was a “close call”, some officials remain wary of important downside risks abroad, and there is a “reasonable argument” that a hike could be made. So… just like in all of the other recent meetings, vague terminology and conflicting ideology seem to be the main takeaway. Gold didn’t know what to make of the minutes and it showed by not reacting at all. It traded in less than a $10 range yesterday (I can’t remember the last time a Fed meeting happened with gold trading in such a small range) and it continues to consolidate. Since arriving in this new price area, gold has yet to close below $1,250 while the 200 day moving average (currently at $1,263.70) has perfectly capped the market this week.
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
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