From the Trading Desk
Gold was pretty much a non-event today and the miners moved up and down all day. Everyone waiting for the Fed tomorrow.
With tomorrow’s report I took some snapshots of what Steve Liesman over at CNBC is predicting for the markets. Do you see what the effect of a rate hike has on pretty much everything? So why does CNBC want it so badly? And the picture below that has 38% thinking that rate hikes coming would be bad for the economy.
Tomorrow I think we get a one and done for the Fed. It definitely is a credibility issue they have if they don’t raise and it’s also the wrong policy to raise as we are not ready from the data I read for a rise in rates yet.
I also think we get a quick spike down in gold as the dollar strengthens and then a bounce in gold. $1,050 is the huge resistance level for gold and the area I am watching to break. If we get below that and stay below that by close tomorrow then under $1,000 is next up on the table. I do however think a lot of the downside attributed to the coming higher rates has been priced into gold.
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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