Fed Gives Markets Heartburn

By Kitco News / February 22, 2018 / www.kitco.com / Article Link

What were supposed to be benignminutes from the FOMC caused a meltdown in equities on Wednesday. In theinitial reaction to an overly dovish Fed, markets soared higher, pushing the Dow up almost 300 points. The jubilation for more free money was quickly met withfear and a market meltdown, with the Dow closing down almost 200

On the news, the dollar crumbled,and gold rallied along with the bonds before dramatically reversing along withequities. Gold continues to struggle and give ground as it looks to test the $1,300level. However, it would be no surprise to see gold rally from $1,324 today fora short-term bounce.

We expect a small bounce in goldbut expect the metal to stay under pressure until the $1,300 level is met. TheFed, which can't seem to get out of the way, will continue to cause heartburnin all markets because they are running out of tricks to manipulate rates. Thekey to watch is the dollar -- the Fed's last hope before losing total control.They will be the black swan.

By Todd 'Bubba' Horwitz

Contributing tokitco.com

ContactBubba@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.

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