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Will she or won’t she?
After listening to some FED governors over the past week calling for a rate hike in June, the stage is now set for “The Boss” to share her opinion of what direction the Fed will take at the June meeting.
The Fed chairwoman today is scheduled to receive the Radcliffe Medal, an award given each year to people who have had a transformative impact on society. She will be interviewed at 1:15 pm today by Harvard professor Greg Mankiv, a onetime White House advisor to President George W. Bush.
But the question remains, will she savor the moment and accept the honor and also share her thoughts on the economy and give us a hint to what she is thinking?
If she passes on sharing anything of substance today at Harvard, which is what I expect, the next time we will hear from her will be June 6th in Philadelphia at the World Affairs Council luncheon.
Keeping a low profile might just be the best medicine for the market until she can accumulate more second quarter data and with that have the ammunition to make the right decision.
Ms. Yellen has always indicated the any rate hike will be data dependent. And let’s not forget the “Brexit” vote which will be decided on June 23rd. That’s six days AFTER the June FED meeting. Such an important vote to determine the future of the EU has to be on the Chairperson’s mind as she considers to raise rates in June.
Overnight we saw strong selling in gold from Far East participants, breaking through the 100-day moving average of $1,215.40 basis spot, (a key level of support). If we settle below that level today, I expect the market to experience more selling pressure in the weeks ahead before the next Fed meeting.
One must remember to be a successful trader or investor in the precious metals arena you need to be well informed on what’s being said about future rate hikes.
Because what is said and done with interest rates seems virtually, THE ONLY NEWS that can affect the prices of precious metals at this time.
God Bless our military and all who served and gave the ultimate sacrifice for each one of us.
Author Name: Walter Pehowich
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