Like Equities, Gold is waiting for the FED

New York (Aug 23)  The buildup is almost over; the big speech in Jackson Hole Wyoming is today. Fed Chair Powell’s remarks will be delivered at 10:00 EDT. Of course, the notes given before the speech could create a reaction in all markets. However, the important parts are what he says that is not scripted. Combine that with a quiet market and there all the makings of an exaggerated move.

Gold has been consolidating for the past couple of weeks as it resolves the huge rally and prepares for the next leg up. The metals already know that interest rates are low and may go lower. This environment is typically not bullish for gold, yet the rally continues.

The rally in gold and silver should continue no matter what chair Powell says today. If we remember one simple thing about trading and investing, price action is king. Although many try to make an ordeal about the news all markets always come back to price action. The metals markets remain bullish and there is nothing on the horizon that should change that view.

KitcoNews

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