Fed Does Little To Help The Metals
On Wednesday, Fed officialsconcluded their two-day meeting on interest rates and as is their way, they didnothing, focusing on the equity market as the only asset class that matters.They should have raised rates, but with their fear of the bubble they built,they remained mute.
Gold ended with a loss Wednesday,making a new two-month low. Gold and silver have rallied overnight. Silver heldthe key level of support at $16.20, while gold is flirting with the key levelof $1,310. If $1,310 fails to hold, gold is headed to $1,280; like a greathorse race, gold could go either way from here.
The biggest problem for gold iseach rally attempt is weaker than the one before. Gold could hold here but themost likely scenario is gold breaks down to $1,280, while silver holds orrallies, narrowing the gold/silver ratio that is now at 79-1.
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