Commerzbank: Gold Has Tendency To Slip Prior To Fed Meetings
Commerzbank says gold prices may well weaken ahead of ameeting of the Federal Open Market Committee next week. After all, this hasbeen a pattern for the yellow metal, which then tends to rise afterward. A U.S.rate hike is expected at next week’s FOMC meeting, the first to be chaired byJerome Powell. “It was not unusual for gold to experience phases of weaknessahead of a Fed meeting last year - this was particularly noticeably in therun-up to the four ‘major’ Fed meetings,” Commerzbank says. “These took placein March, June, September and December and were regarded by the market aspossible occasions for the Fed to hike interest rates.” In conjunction withthese meetings, the Fed releases its latest projections and the Fed chiefconducts a news conference. “Gold always shed 3-4% in the two weeks beforethese meetings,” Commerzbank says. “It thus appears to be reacting in a similarway before the upcoming meeting now. We therefore believe that it is perfectlypossible that the $1,300-per-troy-ounce mark will be tested in the next fewdays. The gold price should recover again after the Fed meeting, as wasrepeatedly the case last year.”
By Allen Sykoraof Kitco News; asykora@kitco.com
WalshTrading: Gold Below Near-Term Averages
Tuesday March 13, 2018 08:45
Goldfutures are below the near-term moving averages but above the long-term ones,points out Michael Bullion, senior technical analyst with Walsh Trading.Shortly before 8:30 a.m. EDT, Comex April gold was down $1.30 to $1,319.50 anounce. “The yellow metal is currently trading below its five-, 20- and 50-daymoving averages, indicating a short-term bearish pattern, but still above the100- and 200-day moving averages, Bullion says.
By Allen SykoraFor Kitco News
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