The Fed Might End Gold's Bear Market; Here's Why
KITCO NEWS -- The end of gold's bear market may be closer than investors think, and the event that will reverse the metal's course might just be this week's Federal Reserve monetary policy meeting, according to veteran trader Todd "Bubba" Horwitz.
Speaking with Kitco News, as gold prices hovered near $1,200 an ounce, Horwitz said he's looking for one more move down before gold's bear trend comes to an end. "This could be the week that it could possibly happen," he said. "It'll take an event, and the Fed is the event that could possibly drive it."
The Fed's first meeting of the year will end on Wednesday, and markets will be keeping a close eye to see how the central bank will act on President Trump's recent actions as well as recent activity in U.S. equities.
To Bubba, however, investor funds will really start to flow into another precious metal: silver. "Until gold finally turns, silver will the place to be," he said.
April Comex gold settled the day slightly higher at $1,196 an ounce while March silver settled higher at $17.152 an ounce.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.
