The precious metal markets loved the Fed on June 10. Gold, Silver, and platinum spiked immediately after the FOMC announcement. The Federal Reserve continued to build upon the world’s biggest legalized Ponzi scheme. There is absolute proof that the Fed has the sense of a gnat. If you place them somewhere in the wilderness, they might never find their way home.
On June 10, the Fed indirectly told Wall Street that they still have an infinite amount of paper and ink to print money forever. The announcement was greeted by volatility in the metals markets. Gold, silver, and platinum closed the day near their highs for the day.
The precious metal has now recovered losses that were experienced in the past two-week sell-off. Gold is expected to encounter some resistance at the $1,750 in the August futures. A breakout from that level may see a gold surge to $1,800. Silver also pooped superbly reconstructing its bullish posture. It seems destined for $19 in the September futures.
On its part, platinum is still short with the June 10 bounce being just an oversold rally. Please note that the markets always change. In this case, they can change in any direction at any time without making any formal announcement or giving warnings. But for now, gold and silver are thriving in bullish formations while platinum is showing some bearish signs.
Many experts and investors remain cautious due to the light trade and minimal or lack of liquidity. But, most of them are still long on gold and silver while remaining short on platinum. The metals act as haven assets especially at the time when the health crisis threatens more livelihoods.
Gold may rise higher if the Fed and other major economies continue offering huge stimulus packages.