A-Mark Bullion Update
12.20.2016 While the FOMC delivered the rate hike that the market expected last Wednesday, the language that was conveyed during the meeting caught participants off guard. Specifically, the Fed expressed a hawkish outlook in 2017 with three instead of two planned rate hikes and a longer term rate target moved higher to 3.00% from 2.875%. The USD rallied post-FOMC and the USD index touched highs it hadn’t been at since 2003. With the USD surging, gold gave way and sold down to the low $1,120s on Thursday of last week. The selling pressure on the precious metals complex only let up after this Friday headline: China’s navy seizes US vehicle in international waters. Gold immediately shot up and finished out a poor week’s performance with an up day. For now, the range in gold is defined with support at $1,120 and resistance at $1,150. Silver has found bargain buying under $16 while platinum has found the same on any move down to $900 thus far.
