All Eyes on Fed

All Eyes on Fed

All eyes on the Fed today. Their two-day meeting ends at 2pm EST time with a decision on rate hikes. This will be followed by the Fed Chairman’s news conference at 2:30 pm.

Expectations are that they will continue to hold rates at these levels until at least the end of the year.

We expect them also to announce the end of unwinding their balance sheet and expectations of a slight downgrade to the U.S. GDP figures.

On another front, the U.S, and China are reportedly heading back to the negotiating table in a final push for a trade deal. U.S. trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are planning to return to China next week followed by China’s Vice Premier coming to Washington a week later in an effort to strike a deal by the end of April.

The price of spot Gold continues to consolidate at these levels and as the charts indicate the $1,304 level is a must hold for further advancements in the price. Otherwise a retest of the $1,300-dollar level could emerge.

The most recent Commitment of Traders report released on Friday shows a reportable NET long position at 75,211 contracts and a significant short position of 126,000 contracts still opened. The shorts are still showing their muscle. (Click the chart to enlarge)

 
The price of Palladium continues to climb on strong fundamentals as smart investors continue to adjust and move up their stop loss levels. Current EFP level remaining in a backwardation at minus 50 minus 30.

Have a wonderful Wednesday.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.