Windfall off the Fed is getting factored in, watch for more Fed speeches today

September 23, 2016 9:13AM CDT

Global markets were lower overnight.  With the dollar higher and the appearance of a risk-off physical commodity wave in place, it would appear that the windfall of the no-decision by the Fed may begin to wear off.  That being said, focus will soon shift to December’s decision and whether or not you believe the Fed will actually pull the trigger.  It seems every time they speak hawkish and continue to say they want to see stronger economic data, they still do not raise.  The gold and silver markets have become short-term overbought after closing higher for four straight sessions earlier this week.  Many commodity markets have been lifted this week by positive outside market forces, and gold and silver saw almost a clean sweep of beneficial outside market action from crude oil, the currency markets and even the equities on Thursday.  However, in the early going today it would appear that a commodity reversal of sorts is underway and that has gold and silver on the defensive.  Fortunately for the bull camp, the world’s largest gold ETF saw their holding ride by 6.53 tonnes on Thursday, and they reached their highest level since late August which might cushion prices somewhat.  I believe we may see some pull-back action over the next few trading sessions, which in my opinion will present buying opportunity, whether it be futures or options.  Resistance comes in today at 1344 and then 1350-1352 with support at 1334-1332.  1325 is the big level that the market will need to close under in order to negate the bullish short-term trend.

Gold Daily

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