BOE hikes 50 BPS, Fed Next? Where is the bottom in Gold & Silver?
PHIL: Overnight precious metals mixed Gold futures are up $3 at $1927 Silver futures are down 12 cents at $22.54 Copper futures are down 5 cents at $3.84 Platinum is up $1 at $927 Yesterday we saw the BOE raise 50 Bps, pushing the U.S. Dollar higher, and the question is, will the Fed follow? Looking at the FedWatch tool, with 33 days till the next FOMC interest rate decision, the CME has the probability of a 77% chance of a 25 bps hike. Jerome Powell was quoted recently saying, "he believes there is a path to a soft landing and sees the need for more interest rate hike and does not see rate cuts anytime soon." My takeaway from the recent sell-off is that we don't have the clear driving fundamentals to support a rally in Gold and Silver. Three levels I am watching are $22 in Silver, $1920-1900 in Gold, $920-900 in Platinum, and we may need to bring Palladium into the mix, trading below $1300/oz. Remember, it was trading over $3000/oz just a year ago. With Precious Metals out of not grabbing attention, remember to build your core positions and look outside the box to markets like Grains and Energies. A good mix in your portfolio helps balance times when nothing is happening in your core target market, such as Precious Metals.
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On the date of publication, Phillip Streible did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
