Welcome to FOMC week. The two-day meeting concludes on Wednesday afternoon with Chair Yellen scheduled to hold a press conference at 2:30pm EST. All markets will be waiting for any hint on a policy change that would indicate the much talked about rates hike(s) are set to begin. The tone of her statement and answers to questions will be critical as a dovish nature with words like “patient” continuing to be used would indicate the FOMC may be concerned with the recent weak economic data and a rate hike could be pushed back to the fall or perhaps not at all this year. Such an indication would weaken the USD and likely bring a big rally to our market as speculative short positions, which continue to grow ,would be covered while fresh buying is being done. A “hawkish” tone and the removal of “patient” would signal that a rate hike in June or perhaps August is likely which will pressure our market as the USD will likely continue strengthening.
Precious metals began the week yesterday with good physical buying noted from the U.S. and Asia, although overall volume remains light. Gold and silver made a run into nearby resistance levels, topping out at $1,164.00 and $15.78 as the continued weakness in crude oil then weighed on precious metals. Speaking of crude it is down another 2 percent this morning and may empower the short sellers to see if the market can hold nearby support at $1,150.00 and $15.50.
***Please call our trading desk for premiums and availability of 2015 one ounce silver Libertad’s. We have limited supply and expect to begin shipping next week.***