Will Fed Chair Indicate a June Rate Hike Today?

The Market Gage - Dillon Gage's Precious Metals Newsletter

Will she or won’t she?

After listening to some FED governors over the past week calling for a rate hike in June, the stage is now set for “The Boss” to share her opinion of what direction the Fed will take at the June meeting.

The Fed chairwoman today is scheduled to receive the Radcliffe Medal, an award given each year to people who have had a transformative impact on society. She will be interviewed at 1:15 pm today by Harvard professor Greg Mankiv, a onetime White House advisor to President George W. Bush.

But the question remains, will she savor the moment and accept the honor and also share her thoughts on the economy and give us a hint to what she is thinking?

If she passes on sharing anything of substance today at Harvard, which is what I expect, the next time we will hear from her will be June 6th in Philadelphia at the World Affairs Council luncheon.

Keeping a low profile might just be the best medicine for the market until she can accumulate more second quarter data and with that have the ammunition to make the right decision.

Ms. Yellen has always indicated the any rate hike will be data dependent. And let’s not forget the “Brexit” vote which will be decided on June 23rd. That’s six days AFTER the June FED meeting. Such an important vote to determine the future of the EU has to be on the Chairperson’s mind as she considers to raise rates in June.

Overnight we saw strong selling in gold from Far East participants, breaking through the 100-day moving average of $1,215.40 basis spot, (a key level of support). If we settle below that level today, I expect the market to experience more selling pressure in the weeks ahead before the next Fed meeting.

One must remember to be a successful trader or investor in the precious metals arena you need to be well informed on what’s being said about future rate hikes.
Because what is said and done with interest rates seems virtually, THE ONLY NEWS that can affect the prices of precious metals at this time.

God Bless our military and all who served and gave the ultimate sacrifice for each one of us.

Have a wonderful holiday weekend.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. 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. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.