The Fed Meeting: How Will It Affect Gold?

federal reserve building
Written by Mike Hammer

With the Fed on tap today, everyone wants to know where gold is likely to go.  The expectation is for the Fed to hold interest rates where they are; some strong numbers early last week probably weren’t enough to override unexpected weakness in manufacturing confidence numbers, given the Fed’s more dovish stance lately. So if interest rates don’t change what which direction will the Dollar go?

And what will the effect be on gold? Banks are weighing in with their opinions. TD Securities things it’s too early for a breakout but sees higher prices in 2019. Standard Chartered thinks prices will dip before they risein 2019. ScotiaBank sees growth rates dropping worldwide, and central banks slowly buying gold, which they think will lead to slightly higher gold prices near-term.

So the banks’ consensus opinion is to look for higher gold prices as 2019 proceeds, but probably not get-rich-quick prices. Today’s feature is ScotiaBank’s Metals Monthly paper; we’ll freely admit we don’t always read this but it’s good to check in from time to time.  With some metals making new highs now seems like one of those good times.

Continue reading at Scotiabank

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as continuing themes. Mike graduated with a business degree and spent years as a financial advisor, before moving to New York and to pursue a career in IT and education. For more than a decade Mike has been working with the Adam Mesh Trading Group as a stock market and commodities mentor. He’s trained over 200 individuals, spoken at several national conventions, and is a frequent contributor to educational webinars.

Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keeps him in touch with "the student mindset".

Mike focuses on the precious metals markets, the energy industry, and the financial sector. His motto is "Plan your trade, then trade your plan!"

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