Gold Treading Water Ahead Of Next Week's Fed Meeting
(Kitco News)- Gold is likely to continuetrading in its recent range into the Fed meeting next week. It appears that theadministration has softened the blow of the tariff threat by imposing initialtariffs of 10%, with the possibility of an additional 15% in 2019. The 10% bumphas mostly been offset by the weakness in the Chinese yuan over the past fewmonths and as such should have a small impact on the Chinese economy. Tradersare beginning to assess the inflation impact on the U.S. economy where thesetariffs will create higher prices at the retail level, albeit it may takemonths before this feeds down to the consumer level. The focus will be on theFed where traders will focus on the comments for indications of future rate-hike guidance. We may again get a stab at thelower support band for gold at $1,193 before the meeting but would considerthis an entry point for traders that have remained on the sidelines. Riskremains with the bears. The PGMs have shown some recent life. Platinum hasmoved up $40 relative to gold. Palladium has again regained the $1,000 leveland rhodium has quietly continued its march higher, now north of $2,400.
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