3,2,1...Showtime
(Kitco News) - After months of speculation, the big show is almost here and for gold investors, this could be the metal’s chance to break free. That’s right, next week the only thing investors are watching is the Federal Reserve’s monetary policy meeting.
And according to most analysts, there is no doubt that interest rates are moving higher. Markets see a 25-basis point hike as all but guaranteed. The question that has sidelined gold investors is on the number of interest rate hikes for the rest of the year.
As for today, the gold market is preparing to end its fourth-week of negative losses as prices test the lower end of its trading range. April gold futures last traded at $1,312.40 an ounce, down almost 1% from the previous Friday.
The silver market is also testing support within its recent trading channel as it gives up last week’s previous gains and then some. May silver futures last traded at $16.255 an ounce, down 2% from the previous week.
In other news this week, we had Larry Kudlow possibly putting in a floor for gold.
The White House’s new national economic advisor came out saying that that he supports a strong U.S. dollar policy, noting in an interview with CNBC: “I would buy King Dollar and I would sell gold.”
As for having a real impact on gold, Vince Lanci, founder of Connecticut- based Echobay Partners is thinking little of it. "Kudlow may be the right man for the wrong situation," explained Lanci, "His public cheerleading is not at all consistent with the market performance. The USD has gone from 8 Yuan to about 5.8 in the last 10 years. That is a 25 percent drop in king dollar buying power versus the rising star in the east."
And for a moment in eastern Russia, gold literally fell from the sky.
A Russian plane lost $378 M in gold earlier this week after strong winds blew off a cargo plane door upon takeoff from Yakutsk Airport. The gold belonged to Chukotka Mining and Geological Company, a subsidiary of Kinross Gold.
Talk about a pot of gold...
And on that note, Happy Saint Patrick's Day!
Enjoy the weekend!
By Daniela CamboneFor Kitco News
Follow @DanielaCambone
dcambone@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.