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.
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