Metals Minute 58: Gold and Federal Reserve Meeting
Suspended animation, slowly drifting lower…like an aircraft gliding, waiting for the engine to start in midair. This metaphor perhaps captures the emotions of many of us owning gold and silver over the last week - expecting them to move higher.
For the week, gold was down 1% to $1,774, silver was down 4% to $21.65, platinum was down 5% to $911, and palladium was down 15% to $1,593.
For the one year, gold was down 4%, silver down 12%, platinum down 13%, and palladium down 31%. We recommended profit-taking from palladium last year and hope you could benefit from that before the return from the stratosphere in the metal.
As we await the Federal Reserve announcements later today, what we expect is they will announce a faster tapering and return to interest rate increases sooner than predicted previously, but nothing major.
If you are an owner of precious metals, stay encouraged. Keep in mind that even when gold increased 8-fold, there were weeks like the one we now have. Like turning up heat below a pot of water, it seems like it will never boil when watching intently. As the fire builds, water boils. The fire underneath gold and silver is building.