I should have noted that there was a release of notes today from the most recent Fed meeting. These releases, as well as the day the Fed announces, are usually volatile days for the markets, including gold and silver. Today was no different.
Gold and silver each had a nice spike up when it was revealed by some of the Fed they thought the dollar was getting too strong and they are now tiptoeing around raising interest rates by any certain date saying instead it depends on the data.
From CNBC:
The Federal Open Market Committee debated whether the current language painted the wrong picture on the timing of rate hikes, with the outcome being agreement that rate hikes would depend on data and not a calendar date, according to minutes released Wednesday.
Fed staff also cut their growth outlook due to the higher dollar, as a number of committee participants expressed concern about global weakness.
Gold miners jumped up with the price of gold as the dollar turned weaker.
I’ll have more later this afternoon. Recall I have been writing about how the Fed can’t be serious about raising interest rates. It was only financial media hype. Now we know what they did say.
This could be the catalyst for a move higher for the metals, but by no means the end of the current downtrend.
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.
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.