The gold bulls were likely disappointed with the FOMC meeting notes on Wednesday, which showed that Fed officials were divided about how many more easing steps they would take this year, but the market only seemed to suffer some momentary weakness in the wake of the release.
With that out of the way, the trade will be looking to the Jackson Hole symposium today and tomorrow, particularly Powell's speech on Friday. One can't help but thinking the market is looking for something that the Fed would be hard-pressed to deliver.
Leaders of the G-7 nations will meet this weekend, which could offer a chance for some volatility on Monday. Gold bulls keep pointing to negative interest rates in Europe and Japan, trade war threats, possible currency wars and general concerns about the global economy as long term supportive factors.
However, the economic optimism that has emerged in the US this past week seems to be keeping a lid on prices, and it looks like the wide ranges from last week will continue to contain gold and silver.
Total known ETF holdings expanded to 2,424.9 tons on Wednesday, the highest since 2013, according to data compiled by Bloomberg, which points to steadily higher investment interest. This also suggests the market will be supported on pullbacks.
We invite you to subscribe to receive our more comprehensive market update delivered directly to your inbox.
Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Financial Services LLC, unless otherwise expressly noted.
