There’s nothing like a huge-news Monday. You kinda want to roll out of bed, yawn, stretch, drink a slow cup of coffee while watching the news.
Then somebody hits the accelerator. From crawling speed to 200 mph in just a few breathless minutes. That’s what it was like this morning. Yes we knew about Friday’s trading already, and Yes we knew about Hurricane Harvey. Our hearts and hands go out to all our great friends and their families in Texas. You’re all welcome here if you need a place to go.
But still it’s a bit of overload for a Monday. So let’s get to it – How might each bit of major-news affect our favorite yellow metal?
First let’s remember the background. Before the Fed invaded Jackson Hole and Harvey took aim on Texas, gold was banging its head on the 1300/oz barrier. It even briefly broke through, which made news in this very column, before settling back down and continuing its sideways action.
Then came the Fed. As we predicted, the dovish tone from the Fed has lessened some pressure on gold, clearing some obstacles to higher gold prices. On Thursday last week gold firmed up under 1300. Then came Friday morning…