Ready for Signals….
With President’s Day upon us, our markets are a little quieter than usual. But as this Monday dawns, all eyes appear to be on several members of the Federal Reserve, of which the heads of five regional Fed banks are slated to give speeches before Friday. As we well know, a few comments here or there regarding the rise or hold of interest rates seem to trigger quick activity in the precious metals market. The next scheduled full meeting of the FOMC is slated for mid-March. The FedWatch Tool from CME Group is indicating an 82 percent chance of no change in interest rates.
Inflow into Gold ETFs actually reversed course on Friday, with an outflow of 2.4 tons—the first such occasion in the last month.
We continue to look overseas to the European market for other indicators. Sovereign debt is as big a problem abroad as it is at home. Any changes in the Euro-Zone will have to be monitored this week.
At the time of this writing, spot prices for gold are currently holding steady at $1,238.60. Silver checks in at $18.04.
Have a wonderful week and stay tuned…
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