“BIG” Money Runs to Precious Metals Before Fed Announcement
Treasuries were down and gold had a major breakout the day before the Federal Reserve decides how to highlight their future economic policy. Making people to believe that the Fed will highlight the recovering economy and keep interest rates at low levels.
Gold also was bought on news of the Bank of India buying 200 metric tons of the precious metal from the International Monetary Fund. This means more countries are trading in their dollar for gold as the fear of a deteriorating currency remains strong. This double whammy led to another major technical breakout on very good volume.
I am remaining focused and bullish on our gold mining stocks and believe there is room to run here and still have a target of $1120.