FED Actions Should Pressure Gold
Once again, the master manipulators, better known as theFederal Reserve, are manipulating dollars to try and keep interest rates low.They are scared to death that rates will get away from them, as they have everytime. They have tried to control and keep them artificially low.
The entire QE program has been a debt building bust, fromBernanke through Yellen and there are no real changes expected. The latest inthe FED screw ups is their manipulation of the dollar - trying to stem the tideof rising interest rates by slamming the dollar. The FED has been able tocreate massive wealth for the rich and at the same time blow 5 trillion dollarson nothing.
The most recent FED actions have led to a big rally ingold, their desire for artificial inflation has brought gold to highs not seensince last July. The huge move in gold comes from lows that showed major damageand a breakdown on a weekly basis. In one-month, gold has gone from rags toriches because of the FED's cluelessness.
Although we believe the bear market in gold is over we areconcerned about the recent rally and the speed in which it has risen. There isno doubt the FED will lose control as they have done every other time, whichshould create some short-term pressure on gold. We expect a selloff frombetween $1,340 and $1,360.
By Todd 'Bubba' HorwitzContributing tokitco.com
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Bubba@bubbatrading.com www.bubbatrading.com/ Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.