Gold Price Takes Off

New York (July 27)  Analyst Pter Hugh suggested yesterday that gold was poised for a breakout and that the break was imminent. There was no crystal ball, just a belief that the Fed would not raise rates in July and in our view most likely not for the balance of 2016. The Fed has had numerous opportunities to normalize rates over the past two years and have squandered them all.  Today, true to form, they left enough language in today’s release to leave September on the table. In my opinion, the judgement of Fed members notwithstanding, what choice do they have but to leave the possibility of a rate hike on the table? They would look like total buffoons, if they reversed course now. The spike is a scrambling short-covering rally, but may set up a test of the $1,355 level, which if surpassed, opens up the 2016 high of $1,376.

Source:  KitcoNews