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Gold Motionless In Advance of Jackson Hole Summit
Category: Market Reports
Author Name: Walter Pehowich
Posted: 08-24-2016 12:31:00 PM
Author Name: Walter Pehowich
Posted: 08-24-2016 12:31:00 PM
The price of gold virtually motionless as the market awaits some news from Federal Reserve chair Janet Yellen’s speech Friday at Jackson Hole.
The price of gold virtually motionless as the market awaits some news from Federal Reserve chair Janet Yellen’s speech Friday at Jackson Hole.
For those who are not familiar Jackson Hole, it is typically a mountain resort for skiers and mountain climbers. Every summer it turns into the site of an exclusive conference of central bankers who are responsible for global monetary policy.
The title of this year’s conference is: Designing Resilient Monetary Frameworks for the Future. I’ve asked a few prominent Wall Street traders to shed some light on what that might mean and most said they have no clue.
I have heard the same response from many traders when asked if the FED is in touch with reality and their response was the same “it seems they no clue on what to do regarding a rate change.”
So it’s no surprise that the price of gold remains motionless as we wait for the Fed Chair’s comments.
CME’s FEDWATCH Tool gives just a 24 pct. chance that a rate hike will happen at the September Fed meeting.
November’s meeting is showing a 29 pct. chance and December a 52 percent chance.
No wonder the Gold ETF market has been flat for the past week or two with no significant moves either way
with inflows or redemptions.
Many news guests on CNBC, FOX and Bloomberg have also expressed their frustrations with Fed policy.
If you remember I reported on a Flash Gage last week that it seems after reviewing the minutes from the last Fed meeting, voting participants are split down the middle trying to decide if a rate hike is appropriate.
It seems that the only news that moves the price of gold these days are stories of a possible rate hike. Whatever happened to supply and demand issues and inflation worries?
As I’m in the process of completing my comment this morning, I see the price of gold break thru the important level of support at $1,332 in the December contract down $ 14 .00 quickly from when I started this report so I’m scrambling to find the news that created this sell off.
Looking at times and sales it looks like at 8:40 Eastern time, someone sold 10,000 contracts of December gold causing the market to drop $ 14.00. Looking at all the news wires available to me I find NO news that would justify that sell off.
If any significant news is released I will be right back with a Flash Gage report.
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About The Author
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Author Name: Walter Pehowich This editorial has been prepared by Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not prove to be true, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept the foregoing. |
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