Gold to Gain on Fed Credibility Questions

The Fed’s March monetary policy meeting was highly anticipated by precious metals investors. Now that it has come and gone, we examine the significance to the gold trade. I see gold clear to recover to recent highs as the Fed has clearly communicated rate hikes are yet in the distance. The Fed’s reasoning for holding off at least through April is suspect in my opinion, and rather implies direct concern about dollar strength. It brings Fed credibility in question because of the Fed’s stated concern about employment and inflation, which I find hard for it to justify. If the Fed’s credibility becomes something more than your author here questions, then gold gains greatly in its appeal. See my full report on gold here.

Precious Metals Securities	03-20-15 Morning
SPDR Gold Trust (NYSE: GLD)	+1.1%
iShares Silver Trust (NYSE: SLV)	+3.3%
Market Vectors Gold Miners (NYSE: GDX)	+3.3%
Market Vectors Junior Miners (NYSE: GDXJ)	+3.2%
Direxion Daily Gold Miners Bull 3X (NYSE: NUGT)	+9.6%
Goldcorp (NYSE: GG)	+3.9%
Newmont Mining (NYSE: NEM)	+1.4%

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