US Fed Will Create Volatility In Gold And Silver On Wednesday

In this article, we summarize which events in the week ahead could impact the gold price and silver price. At the bottom of the article we explain that these events are generaly no fundamental drivers, but mostly the result of trading in COMEX futures.

The precious metals are are basically stuck within a trading range. Gold remains between $1170 and $1200 while silver is respecting its trading range of $15.80 to $16.25.

For the week commencing June 15th, there are several central bank announcements which will probably impact the gold and silver price significantly, as seen in the table below. On Wednesday, all eyes will be on the U.S. Fed interest rate decision, which will come with economic projections by the Fed and a speech by chairman Mrs. Yellen.

It is almost certain that markets and metals will be moving, whatever the announcement and interest rate decision will be. An interest rate hike has been wildly anticipated for a long time, yields have been rising so far in 2015, and stocks in the U.S. have basically gone nowhere.

Watch Wednesday, and the volatility in precious metals.



Note: The primary focus of our website is to report on the different aspects of the gold market: fundamentals, economic and monetary analysis, basic technical analysis. Our view on the real price setting in the gold and silver market differs from the mainstream view. Price changes “happen to coincide” with events, and mainstream media got used to report some sort of relationship between the two. However, we believe that the real price setting is taking place in the COMEX futures market. Market expert Ted Butler does an outstanding job analyzing the weekly evolution in the COMEX market and how it affects price setting

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