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Buy the Rumor - Sell The News ?

Scorpio

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Buy the Rumor - Sell The News ?

Wednesday April 27, 2016 08:33

(Kitco News) - Metals moved higher on expectations that the Fed will leave rates unchanged today and possibly suggest that a June increase may also be off the table. The mood infers a weaker US$, which is reflected in higher oil, now flirting with the $45 handle. Should today go as scripted, it is expected that gold will finally break above and hold the $1,250 level, in preparation for the next leg up. This should be the outcome, however caution is suggested, as traders may have positioned long on the rumor and may sell the announcement. Better to pay up for the metal than get caught in a bear trap. Gold should be contained within a $10 range until the announcement at 2 p.m.

By Peter Hug, Kitco Metals Global Trading Director; phug@kitco.com





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http://www.kitco.com/commentaries/2016-04-27/Buy-the-Rumor-Sell-The-News.html