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Buy the Rumor - Sell The News ?


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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

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 precious metal products, 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.