All algorithm platforms locked and loaded as the Street awaits to hear from the Fed Chairman at the Economic Club luncheon at noon today in New York City.
Most don’t expect the Chairman to give any insight into future rate hikes, but you never know what can come out of that speech that can impact the markets.
Many traders are hoping to get some indication that the Fed will be less aggressive with their rate hike policy next year and also would be happy to hear that the Fed has decided to put in place an accelerated drawdown of their balance sheet.
So, a less aggressive Fed with let’s say two rate hikes instead of four in 2019, plus an accelerated draw down of its balance sheet, would be music to ears of investors.
Also in the minds of investors is the meeting at the G20 summit on Friday between our President and the President of China. The whole world will be watching closely because I don’t think there is anyone out there who wants to see this Trade War with China accelerate.
The deadline for the President’s plan to impose a 25 percent tariff on China’s imports to the United States is fast approaching and I don’t think any investor or company anywhere in the world wants to see that put in place. One has to believe that this is our President playing hardball, negotiating from a position of strength as the U.S. economy is thriving and the China economy is declining.
Both stories I mentioned can have a significant impact on the markets.
Current Action In Our Markets
Interestingly enough, at the time of this report the price of Gold has held the $1,212 level, the absolute level of support and the bottom of our trading range from $1,212 to $1,232. I find it amazing how the market continues to trade on technical levels.
The Precious Metal Markets are no different than any other market, as they too are waiting to hear from the Fed Chairman and news out of the G20 summit.
Also, we will be watching the developments out of the Brexit negotiations and the conversations between Italy and Brussels as these other two stories can also move the markets.
A lot to keep an eye on and as always you can rely on the folks at Dillon Gage to get the news out to you as soon as it happens on our FLASH GAGE news wire.
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.