Gold Visits No-Man's Land
For months gold has been aresident of no-man's land, showing no desire to leave the walking dead. Todaythe FOMC announces its decision on interest rates, and the Street has alreadypriced in another rate hike.
The actual announcement will beno surprise, but what the Street will be waiting for is the statement thatChair Powell will have when explaining the Fed's decision. The equity marketsappear to be saying that the Fed will hike but will remain dovish.
Considering gold has done nothingfor months, a sudden change in the Fed's policy could be just the ticket forgold to break out of this range to the upside. We see very little the Fed cando today to hurt the price of gold. We think there is a better chance that themetals could see an upside surprise.
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