Wagner silver gold Current Gold Outlook; the good, the bad, and the ugly
Unless you’ve been living under your computer screen you are well aware of recent price action pressuring gold dramatically lower. Over the last six months since gold hit its highest value this year gold has been devalued by $400 per ounce or 19.45%.
Questions that need to be asked and answered to formulate a projection that has some probability of being accurate require that you look at the current economic fabric on multiple levels. From different vantage points so to speak; I have broken down into three categories, the good, the bad, and the ugly.
But before we move forward, we need to establish the narrative that causes gold to lose 20% in six months. In March 2021 the Federal Reserve raised its key Fed funds rate for the first time since 2018. As of September 15, the Federal Reserve has raised rates at each FOMC meeting beginning in March they began with a 25-BP rate hike, a 50-BP hike in May, and a 75-BP hike in June and July. The net result was that the Fed raise rates from near zero to between 2.50% to 2.75%.
However, the ugly truth is that much more rate hikes are needed and rates will have to remain elevated for a lot longer than most people realize to have any dramatic effect on lowering inflation levels. As of 5:45 PM EDT gold futures basis, the most active December contract is down $35.20 a decline of over 2% and fixed at $1673.90. This is a major break below a critical level that was formerly supported. In tomorrow’s article, we will look at the technical levels that gold could trade to if it continues to move south. I hadWishing you as always good trading and good health,Follow @garyswagner [email protected] www.thegoldforecast.
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