With FOMC on tap with an upcoming .5% rate hike, gold got hammered and bounced back with a vengeance on ‘CPI’ Friday. The Fed will raise the Funds Rate at least .5% next week. So says not me, but the wise guys whose job it is to correctly anticipate FOMC policy. Indeed, a full 20% of CME traders expect .75%, up from our last check on June 3.
Meanwhile, the gold price (futures) was unceremoniously shoved below the daily chart’s SMA 200 before pulling its bounce back routine on CPI Friday. Check out that reversal volume. This is notable stuff and with FOMC in the wings, it is doubly so.
To NFTRH, unlike many gold/commodity observers, gold is far different from the other inflated stuff. It has far more counter-cyclical aspects to it than copper, industrial materials, energy commodities and even to a degree, silver. Continue reading "A Pivotal Juncture for Gold"