Gold Holds Support In Face Of Hawkish Fed Perceptions
(Kitco News) - Metals dropped sharply yesterday after the release of theFOMC meeting minutes for December. The perception that the Fed presented a hawkish perspective generatedprofit taking in the metals and reversed the recent dollar weakness. I read theminutes a little differently. It appears there is growing concern within theFed of what the impact of aggressive rate increases will do to the economy and I remain unconvinced that the Fed will move morethan twice in 2018, and there remains enoughevidence that they may not move at all in the early part of 2018. Thecorrection in metals would likely have occurred in any case, as we suggestedthe market looked overextended. Both gold and silver held support after thesell-off and the dollar reversed its pop right at the 1.20 euro/dollar level.It's possible we have seen the correction,but would want to see gold take out the $1,322 level for a more serious upsidemove. Silver is having issues at $17.22 but a break here suggests $17.58. Ifthe market has topped short term you wouldexpect to see a retest of support today.
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