The gold bulls didn’t wait long to buy the Fed dip.
It’s understandable that there would be some profit-taking in gold ahead of the FOMC given the big run-up since the start of the month but it didn’t last. Gold has trimmed a $38 decline to just $12 a few hours before the Fed decision.
The strong buying in the last hour is indicative of a market that wants to buy regardless of what Powell says today. The thinking is that even if the Fed isn’t dovish now, it will be later and perhaps moreso. President Trump wants lower rates and he’s willing to go far beyond the usual norms to get them.
In addition, the ongoing breakdown in the global 21st century order is continuing. The Ukraine war is dividing the world into east and west while the US trade war is undoing globalization. That exposes a multitude of fresh risks and all of them are gold-positive.
gold 10 mins
