The price of Gold marches higher as the value of the U.S. Dollar continues to soften. As Gold approaches the $1,200 dollar level, traders still holding short positions (and there are many) must be thinking twice about holding on to a possible losing trade. One must expect stops loss orders to be placed above the $1,200 dollar spot level and if triggered should fuel further price increases.
Gold traders and investors will be waiting for today’s release of the latest FOMC minutes at 2:00 p.m. Eastern Daylight Time EDT. These comments can affect the price of Gold and other markets, so it’s a good idea to stay tuned to these developments.
Traders will also be watching tomorrow’s meeting of prominent central bankers at Jackson Hole, Wyoming. Whatever is revealed could have significant market implications.
On Friday at 10am EDT, we can expect to hear from Federal Reserve Chief Jerome Powell. We are not sure what he will say, but some expect the Chairman to share his thoughts on changes to monetary policy in his speech.
He could also talk about continuing trade tensions between the U.S. and China, and their possible effect on the pace of interest-rate hikes and the direction of the U.S. Dollar.
Next month, the Fed is expected to raise interest rates for an eighth time since late 2015, with CME Fed Watch tool indicating the probability of a hike at almost 94 percent, so you can say that’s a done deal and already baked into the markets. In December, chances of another rate hike is not as strong at 61 percent.
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.