Friday, June 1, 2018

Range bound gold price may not see a move until the Fed's June rate hike decision

With the gold price having done virtually nothing this week as geo-political events take place in Italy and Spain, and financial troubles brew for Deutsche Bank, analysts are looking at the Fed's June FOMC meeting to determined what direction the precious metal might go.


Gold prices have been stuck in a strong range ever since the price was crushed back on May 13 to fall below $1300 for the first time in several months.  But the reality is that despite the propaganda and false high sentiment that the economy is chugging along, inflation has really exploded to back above 10% (according to Shadowstats.com) while last month's GDP numbers were revised down to just 2.2%.

Gold rally is on its way and the precious metal could shoot up to $1,360 in just three weeks, says one analyst, citing the upcoming Federal Reserve rate announcement in June. 
“My belief that a rally to $1,360 or higher in gold within the next three weeks is based not on hope, but data,” Global Pro Traders CEO David Brady said in a Sprott Money’s post published on Thursday. “Signs that a significant gold rally is pending or has already begun.” 
Brady’s analysis lists market fundamentals, positioning, sentiment, and technical outlook: “Based on declining open interest, falling yields, a falling dollar and declining rate hike expectations, the data has only improved for gold,” he noted. 
One of the key things to watch in the next three weeks is a possible Federal Reserve rate hike on June 13. - Kitco

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