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Thread: Hold On, Gold Is Not Done Falling - Phil Streible

  1. #1

    Default Hold On, Gold Is Not Done Falling - Phil Streible

    The U.S. Federal Reserve is likely to raise rates at their next meeting in June, adding more downward pressure on gold, this according to Phil Streible, senior market analyst at RJO Futures.
    “In June, [the Fed] should raise rates again. That’ll probably be another catalyst to put the pressure on. I think for longer-term traders, if you look at the ADX, which measure the strength of the downward trend, it’s at 40, which is a considerably strong downward trending market,” Streible told Kitco News.
    The strategist noted that the Fed’s hawkish stance would likely be justified by a healthy U.S. economy, as evidenced by low unemployment numbers.
    “We’ve got the unemployment rate at 3.9%, that’s the lowest level we’ve seen in 18 years. That’s going to considerably weigh in on the Fed’s decision on the next go-around,” he said.
    Despite this week’s bounce up in gold prices following the FOMC’s decision to keep rates unchanged on Wednesday, Streible said that gold will have a hard time sustaining upward momentum, citing a strong dollar as the main headwind.
    “The dollar index has been really weighing on gold, and the dollar broke out from a small consolidation range, and it looks like we can target some of those previous highs of 95 on the dollar,” he said. “The last time it was at that level was last November and gold prices were down at $1,275, so if the dollar continues to rally, I think that’s what’s going to weigh in on gold.”
    A close below $1,300 an ounce would be concerning, Streible added.




  2. #2

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    Is ok. Remember all that crap that the talking heads said was putting pressure on gold going to $5,000 an ounce, that didn't pan out either.

  3. #3

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    Quote Originally Posted by DBCooper View Post
    Is ok. Remember all that crap that the talking heads said was putting pressure on gold going to $5,000 an ounce, that didn't pan out either.
    talking heads are just talking.
    Compare the pile of profits APPLE made and the debtpile and compare their magnitude, the service of the debtpile at low rates alone should give one the shivers.

    Golditiki2+++

  4. #4

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    If we check the news on fed rate increases, we see varying scenarios, it keeps changing by the month. They really don't know. As it is now, June is a 50/50 chance, they initially wanted to bump it 6 times this year. Now it's, as in what they are saying now is possible two more times this year. I don't think it's enough to push gold price down significantly, the west doesn't buy much gold. Agree, debt servicing is in the drivers seat here as is inflation expectation, gold is just along for the ride it seems.

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