From the Trading Desk
After a wild few days of trading, the Federal Open Market Committee minutes yesterday didn’t really provide any additional shocks to rattle the markets. The FOMC expects inflation to rise, unemployment to fall, and the economy’s equilibrium real interest rate to move higher for the next few years. The plan is to still raise the federal funds rate but the overall tone of the meeting had a slightly dovish bias. There is concern among several members that Chinese equity liquidation as well as issues surrounding Greece may ultimately adversely affect the US.
The International Monetary Fund lowered its global growth outlook for the remainder of 2015 to 3.30% from 3.50%. This helped gold rally earlier today but the yellow metal was unable to hang onto its gains as the session wore on. Sizable bids lifted gold from its lows under $1,150 on Tuesday and yesterday and this is now an increasingly important support level. Silver has staged an impressive comeback after losing over 7% and falling under $15 on Tuesday. Physical demand in the US for coins and bars remains robust and should help buoy silver in the near term.
I’m here in Las Vegas at FreedomFest and there are a few gold exhibitors here and they are all pushing their rare/collectible/numismatic coins while I am the only one here selling only bullion coins (and bars). Earning some good respect from the attendees, especially when I tell them that I think we go lower in price for the metals.
I want to make a note that we have NOT hit lower lows yet and this can possibly mean we get a bounce from here. Not trying to play both sides, but indicate that it is a possibility.
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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