From the Trading Desk
Returning from the long Easter weekend, the markets were quiet to kick off the week. That trend continued into today until Federal Reserve Chair Janet Yellen’s speech at the Economic Club of New York. Yellen stressed that the Federal Reserve will take a cautious approach to future rate hikes given the uncertain economic outlook. She also revealed that should the economy stumble, the Fed will rely on bond purchases to boost it. This was largely interpreted as dovish and with stops triggered at $1,230, gold shot up $10 in a matter of minutes. Equities also reversed their course and moved higher. Gold’s near term target is $1,243, the fifth point on a down trendline dating back to March 11th.
Silver perfectly held its 50 day moving average earlier in the morning and has enjoyed modest gains since Yellen’s speech. Support remains at the 50 day moving average while resistance is intact at the double top from yesterday and today of $15.35.
The Current Thoughts today I turned into an article; The Dollar and Gold Inverse Relationship Still Matters – For Now
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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