Wednesday the Fed announced adecision on interest rates and once again there was no surprise; they didnothing. The equity markets were wild with a 300-point trading range on heavyvolume and volatility. As history has proven, the Fed has no idea of what to donext; in other words, they are clueless.
The metals also were volatile,with gold trading in a $16 range between $1,335 and $1,351, closing near thehigh. Silver, like gold, was volatile by trading in a 20-cent range. Thismorning, both have given up the gains they had on Wednesday and are lookingvery weak.
We remain long-term bullish butshort-term bearish and are expecting the selling to accelerate. Keep an eye onWednesday's lows; if those get taken out, the metals should move down to theirnext support level -- gold at $1,330 and silver at $17. Look for extremevolatility and lower prices.
By Todd 'Bubba' HorwitzContributing tokitco.com
Follow @Bubba_TradingBubba@bubbatrading.com www.bubbatrading.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.