collected by :Irax John
The gold price should resume its uptrend along with the Japanese yen, as Fed rate hikes create more uncertainties in the markets, and not the other way around.
Sell the U.S. dollar and stay long gold or yen while the yield spread between the 10-Year and 2-Year Treasury notes continues to narrow.
Concerns were already mounting a week earlier that Trump’s massive spending cuts and the Fed rate hike will put more stresses on the U.S. economy.
The U.S. dollar sell-off was prompted by concerns about the pace of the Fed rate hike campaign and Trump’s ability to pass any of his bills this year.
At least half of the FOMC participants are on board with Trump’s plans, as they have incorporated an assumption of more expansionary fiscal policy in their forecasts.
Gold Weaker On Profit Taking And On Rebounds In Equities, U.S. Dollar
according to Gold prices also saw a bit of profit taking from recent gains that pushed prices to a four-week high Monday.
(Kitco News) – Gold prices ended a choppy, two-sided trading session slightly lower Tuesday.
The next downside price objective for the bears is closing prices below solid technical support at the March low of 255.85 cents.
Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00.
The gold bulls have the slight overall near-term technical advantage.
according to Silver prices edged lower Wednesday, as demand for precious metals softened on improved risk sentiment and a rebounding U.S. dollar.
May silver futures fell 9 cents, or 0.5%, to $18.17 a troy ounce at 7:45 a.m.
Comex Silver Futures (May 2017)Comments
Gold futures also traded lower through the early part of Wednesday, but were well off session lows.
The U.S. dollar was on track for back-to-back gains after rebounding from four-month lows on Tuesday.