The Precious Metals Sector To Shine As The Fed Blinks
Thursday, January 10, 2019 at 06:26PM
Silver Prices

Preamble

The Federal Reserve stuck to its guns last year and implemented rate hikes as planned. For the year ahead, they plan to hike rates two more times which would be supportive of the US Dollar, if this was a certainty. However, as always there is some doubt that they will do this, and the possibility exists that the Fed will not increase rates at all in 2019. The Head of the Federal Reserve, Jay Powell, recently told the American Economic Association that the Fed is not locked into a number of rate hikes and will be ‘listening carefully’ to the financial markets. His comments helped to steady the markets and aided a short-term bounce which may continue for awhile longer. However, the US Dollar suffered and given its inverse relationship with gold helped maintain gold prices.

Chart of the US Dollar

As we can see from the chart below the dollar has encountered strong resistance at the ‘97’ level and has recently fallen back on the Feds perceived slackening of monetary policy. We expect this trend to continue throughout 2019 and any rally to be short lived. In the near term the technical indicators; the RSI, STO and MACD are in the oversold zone at the moment, so a small short-term bounce could be on the cards.



Chart of Gold Prices

Historically gold has a better....... 

..................................................... MORE


No rate hikes in the near future should see the dollar trade lower, and gold gain some traction.... 2019 will be volatile for the PM sector.

If you would like to know which stocks we are buying and selling please join us atStock Trader our premium investment service.

Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

If you are new to investment in the precious metals sector then you can subscribe of our FREE newsletters regarding gold stockssilver stocks and uranium stocks, just click on the links and enter your email address and we will email you our articles along with other interesting posts.

Please remember to check your spam folder once you have subscribed to ensure that our verification email has not gone astray and you are getting our emails.

 

 

 


 

Winners of the GoldDrivers Stock Picking Competition 2007 

 

 

 Follow us on TWITTER @goldprices

 

 


Article originally appeared on Silver Prices (http://www.silver-prices.net/).
See website for complete article licensing information.