Gold today moved up with silver in anticipation of what I believe to be signs on the wall the Fed knows it made a mistake last December and is now going to have to come up with some language that satisfies investors, doesn’t instill fear in the markets, keeps rates low to stir up growth and somehow gets the dollar a little weaker. #impossible
I’m 100% in the camp there is no rate increase. I’m 100% in the camp that the Fed is fighting deflation. I’m writing an entire book stating the case for it.
I do see weakness in the markets and it is trading with oil 100%. The dollar is a bit weaker and most commodities but oil were up today.
We thought December’s rate increase was historic but I think this meeting will be historic because of the language the Fed will use. You’ll recall what Bullard said just last week; Fed’s Bullard worries over inflation expectations
Stay tuned.
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.