Gold Price Ignores North Korea Meeting And Remains Focused On Fed
(Kitco News)- Depending on your choice of network you can make your ownjudgment on the summit in Singapore betweenTrump and Kim. No matter what your slant, at a minimum the meeting shoulddiffuse short-term geopolitical risk betweenthe two countries. Focus is squarely on the FOMC meeting beginning today and aseries of votes in the British parliament on the proposed path of Brexit. TheFed is expected to raise rates tomorrow, but this has been fully priced intothe market. It will be the language on the glide path that will be analyzed.With the recent turbulence in the Italian bond market and other issues withinthe EU, it is likely the Fed may signal a pause through the summer and itbecomes likely that the mid-terms may hold them off until December. We wouldexpect some weakness into the announcement, a possible knee-jerk reaction lowerand a modest rally, if the Fed does not surprise with a more hawkish stance.Gold continues to be bound by the $1,287 - $1,307 levels, but we suspect thisrange will be taken out this week.
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