Metals expert Jon Nadler talks about the changes in the gold market this week and what that means for investors.
“Gold prices re-tested the $1100 support zone following yesterday afternoon’s post market-closing surprise announcement by the US Fed that it would raise the discount rate to 0.75% in order to encourage banks to borrow more from the private market. The US dollar surged in the wake of the plethora of headlines that followed the Fed announcement. In the hours immediately following the Fed news, gold prices moved over 1 percent lower while the euro also dropped, reaching a fresh 9 month low. Spot gold touched lows at $1,099.50 an ounce, following which it recovered, but was still trading below the $1,108-1,110 an ounce resistance level.
Our friends at GoldEssential.com over in Belgium feel that: “Going by the looks of it, this [move by the Fed] seems more of a clear signal that the Fed is ready to retract emergency liquidity measures than a [de facto] tightening measure based on inflationary threats.” They also noted that: “Technical charts for gold remain upbeat, as prices had thus far refrained from slipping back below a previous downtrend resistance line that was broken to the topside earlier this week, and which was currently located near $1,092.00 an ounce basis COMEX April Gold futures…”
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About Jon Nadler:
Jon Nadler’s thirty-year professional career has focused exclusively on the precious metals market and on its related investment products. After graduating from U.C.L.A. and the U.C.L.A. Business School’s Management Program, Jon established and managed several precious metals operations at major USA-based financial institutions (Deak-Perera, Republic National Bank, and Bank of America). Jon’s current role is that of Metals Market Analyst and PR Head for Kitco. He has long-standing ties in the precious global metals community and has consulted on marketing and product development issues to government mints, precious metals retailers, as well as to trade and membership organizations, such as the World Gold Council.
Jon’s gold market commentaries are frequently quoted by the U.S. Canadian and global financial media (MarketWatch, ROBTV, CBC Radio, BBC UK Radio, CNBC, Forbes.com, TheStreet.com, The Wall Street Journal Online, Investor’s Business Daily, Forbes.com, AFX News.com, Bloomberg, Resource Investor, Investor Ideas, Korelin Economics Report, Smartstox, and Reuters).
Jon’s expertise in consumer education on precious metals is valued by numerous individual investors as well as institutional firms. Jon is a frequent speaker and workshop host at global investment conferences such as The International Investment Conference, The Money Show, Cambridge House Canada, The New Orleans Investment Conference, New Shore Conferences, and Academy & Finance, Switzerland.
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