GoldCore Update: Gold Market Awaits FOMC Statement

Gold
Gold and silver were largely unchanged yesterday. Gold is currently trading $3 higher at $1,134/oz due to dollar weakness ahead of the FOMC meeting later. In euro and GBP terms gold is trading at €778/oz and £694/oz. Support for gold is currently seen at $1,113/oz and resistance at $1,149/oz.

Traders await the FOMC rate decision and statement this afternoon which will likely be the primary driver of the markets today. It is expected that the FOMC will hold the key short-term federal-funds rate within a record low range of 0% to 0.25%, where it has been since December 2008. Continuing record low interest rates are the primary reason that gold has yet to reach the bubble phase. In the 1970s, interest rates had to be increased to well into the double digits prior to the gold bubble bursting.

US equities fell on Tuesday as a climb in producer prices raised inflation concerns. Expectations are that the CPI data may be higher than expected after the stronger than expected PPI data and this should support gold. Bernanke’s view and the consensus amongst analysts is that the recovery is very fragile and thus the stagflation scenario of runaway prices and higher interest rates remains unlikely at this time. The same consensus believed that the US property market was not in a bubble and that the subprime market was contained and would not affect the banking system and wider economy. As ever it is best not to try and predict the future for the economy or to predict the future price movements of asset classes. Investments can fall as well as rise and given the degree of economic uncertainty in the world, it remains prudent to have an allocation to gold (and to the other precious metals).

Silver
Silver is trading at $17.52/oz and continues to take its direction from gold. In euro and GBP terms, silver is trading at €12.03/oz and £10.72/oz.

Platinum Group Metals
Platinum is trading at $1,446/oz while rhodium and palladium are trading at $2,100/oz and $366/oz respectively. Rhodium’s fundamentals remain very sound and a return to prices above $3,000 an ounce looks likely in 2010. Even at $3,000/oz, rhodium would be 70% below its recent record high price (http://www.moneyweek.com/investments/precious-metals-and-gems/investing-in-commodities-precious-metals-rhodium-93413.aspx).

Find out First – Register Now For GoldCore’s Exclusive Market Updates

Mark OByrne

Also on news-goldcore-com

Videos

New Russia/China Gold Backed Currency Imminent

This Little Known Indicator Says Gold Is Still Set For A Major Rally In 2022

David Hunter Stock Market Prediction – DOW 45,000 In 2022

Blog posts

Central Banks…Why Bother?

Central banks…why bother? Inflation is here and it cannot be contained. US inflation is touching a 40-year high, the UK has hit the 40-year high, and the EU’s has already hit an all-time high. Figures of 8%, 9%, and 7% respectively are bad enough. This gives people strong enough reason to want to abolish central […]

READ MORE

New Russia/China Gold Backed Currency Imminent

We were delighted to welcome Simon Hunt to GoldCore TV this week. David Russell interviewed the expert economist and global observer to ask him about the Russia-Ukraine war, central bank tightening, and the future of the US Dollar hegemony. This is a sobering interview where investors will be interested to hear his take on market […]

READ MORE

Is Gold Starting to Behave Itself?

Gold is doing what it is supposed to do!  Equity markets are tumbling, “NASDAQ 100 Rout Erases $1.5 Trillion in Market Value in 3 Days” reads one Bloomberg headline. The big names such as Apple lost over US$225 billion, Microsoft almost US$200 billion, Amazon and Tesla each lost US$175 billion market value over the three […]

READ MORE

Featured

Rick Rule- Should You Invest In Gold 2022

READ MORE

Jim Rogers- The Worst Bear Market is Coming

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

New Russia/China Gold Backed Currency Imminent

This Little Known Indicator Says Gold Is Still Set For A Major Rally In 2022

David Hunter Stock Market Prediction – DOW 45,000 In 2022

Blog posts

Central Banks…Why Bother?

Central banks…why bother? Inflation is here and it cannot be contained. US inflation is touching a 40-year high, the UK has hit the 40-year high, and the EU’s has already hit an all-time high. Figures of 8%, 9%, and 7% respectively are bad enough. This gives people strong enough reason to want to abolish central […]

READ MORE

New Russia/China Gold Backed Currency Imminent

We were delighted to welcome Simon Hunt to GoldCore TV this week. David Russell interviewed the expert economist and global observer to ask him about the Russia-Ukraine war, central bank tightening, and the future of the US Dollar hegemony. This is a sobering interview where investors will be interested to hear his take on market […]

READ MORE

Is Gold Starting to Behave Itself?

Gold is doing what it is supposed to do!  Equity markets are tumbling, “NASDAQ 100 Rout Erases $1.5 Trillion in Market Value in 3 Days” reads one Bloomberg headline. The big names such as Apple lost over US$225 billion, Microsoft almost US$200 billion, Amazon and Tesla each lost US$175 billion market value over the three […]

READ MORE

Featured

Rick Rule- Should You Invest In Gold 2022

READ MORE

Jim Rogers- The Worst Bear Market is Coming

READ MORE