FOMC Meeting Minutes update
The Federal Reserve will likely raise interest rates in June if economic data points to stronger second-quarter growth as well as firming inflation and employment, according to minutes from the U.S. central bank's April policy meeting released on Wednesday.
Most participants said if data show better growth, "then it likely would be appropriate" to hike in June; participants generally thought medium-term outlook had not changed.
Minutes also indicate "closely monitor" was meant "to convey" sense that risks had diminished. Several judged risks 'roughly balanced' but many others saw downside risks - disagreement is prob why that phrase was dropped.
Voting members were a little more cautious -- they said "it would be prudent to wait for add'l info" & leave options open. But with recent info looking stronger, the Street will take this as additional confirmation that a June hike is more likely than not. Separate special discussion of Fin'l Stability says more stringent regs have upped banking system resilience.
Bullion turns negative on expectation of rate hike in June.
Negative news for bullion... especially for Gold
Gold
Yesterday we recommended sell call in Gold around 30040--30050 with stop loss below 30160. It crashed vertically made low of 29931 missed target of 29920 by 11 points and finally settled at 30055.
Now what to expect???
Gold is trading in a very wide range of 29600---30300---30700. Either side break or close with volume will see a clear trend.
Gold has crucial support at 2958 , below 29580…
Who will save gold?
If it breach and close below 29580 for two consecutive days then we will see sharp downside move in it else it could test its resistance level of 30300---30450 and then to 30700 mark
Again we are telling you that be cautious in Gold at upper levels as we will not expect any major upside move in it.
On Comex division, We clearly indicated that Gold is in negative trend. Last support at $1256. Three consecutive closes + weekly close below $1256 will see free fall in it till $1240---$1225. More and more downside panic will see only close below $1225 mark
$1296---$1308 act as resistance while $1333 act as major hurdle for Gold and unlikely to breach its resistance level of $1333 in 2016
Silver
Yesterday we recommended to buy silver around 40750—40700 with stop loss of 40390, it rallied up and made high of 41100 and finally settled at 41060.
Support at 40400 and Resistance at 41600
Either side break or close with volume will decide further.... Chances are bright for downside move as a positional call but traders have to wait for perfect reversal.
