FOMC Meeting: What To Do With Gold Now…

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Yesterday’s FOMC meeting yielded a very bearish result for the gold market. Editor Justin Bennett explains…

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Commodity Trading Research October FOMC Meeting Done - Now What?

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Welcome to Commodity Trading Research Your premier site for fundamental and tech nical analysis for profitable Commodity Trading . For more info on Commodity Trading Research visit our website www.CommodityTradingResearch.com

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Get Your Free Report On The 3 BEST Commodity Stocks for 2016! We’ll tell you about this Special Offer at the end of the video!

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Hi, My name is Justin and I‘m with Commodity Trading Research , today were reviewing our recently published article…

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October FOMC Meeting Done - Now What?

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As you’re likely aware, the US Federal Reserve announced the results of their FOMC meeting yesterday afternoon. Let’s just say the outcome was not what gold bulls were hoping for…

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While the Fed kept rates unchanged at 0%, they deleted some very important language from their announcement. Let me explain…

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In September’s FOMC statement this language was present …“ Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term.”

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That important sentence was erased from the October statement released yesterday.

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What’s the big deal?

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From my perspective it appears the Fed is dropping their excuses for not raising rates. In fact, yesterday’s policy statement suggested a rate raise could come as early as December.

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While I highly doubt they’ll send rates higher during the most important retail sales period of the year, they could do it soon after. Of course, rising interest rates would put a sharp headwind in front of the gold market.

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Judging by metal’s reaction to yesterday’s news, gold bulls may have some tough sailing ahead. Take a look …

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As you can see, the yellow metal reversed sharply lower once investors analyzed the Fed’s October statement. Gold plunged $25 an ounce from the intraday high of $1,182 an ounce to close near $1,156- a bearish reaction indeed.

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Now, let’s back up a minute…

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In recent issues we’ve been discussing the likelihood of a big gold rally . With the yellow metal rising to important technical resistancein October, there was a distinct possibility of a year-end run to higher prices.

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But thanks to yesterday’s Fed meeting, gold bulls had that door to higher prices slammed firmly in their face. As it sits now, gold bears will likely regain market control.

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In fact, I wouldn’t be surprised to see the yellow metal drop back to the $1,100 area in coming months. Of course, there’s always the possibility of an extremely bad economic data point that will change the Fed’s outlook .

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If that happens we’ll have to reassess the situation. But until we see such a predicament, gold will likely remain in its multi-year downtrend.

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How do you capitalize on this situation?

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Here’s a list of the best ETFs to reap profits from gold market moves.

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