Gold prices are trading moderately up and have hit a five-month high in morning U.S. dealings Wednesday. The yellow metal erased modest early losses and moved to its session high as the U.S. dollar index extended its overnight losses and hit its daily low. Buy stop orders were hit in the gold futures market when prices pushed above chart resistance at last week’s high. There is also likely some position evening occurring by the shorter-term futures traders, heading into this afternoon’s FOMC announcement. February gold was last up $6.80 an ounce at $1,260.20.
NOTE : The U.S. Fed is currently dealing with the reality of LOWER INTEREST RATES in the future. The decline in rates is coming as the Fed wrestles with an INCREASE in the Fed Funds rate today, Wednesday, Dec. 19th, at the end of the 2 day monthly Fed meeting. After that, the U.S. economy just doesn’t have the, “legs” to keep raising rates.
This is all Gold POSITIVE, U.S.Dollar NEGATIVE.
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmai.com