The FOMC Minutes have been published and we just read that “the Federal Reserve could raise its benchmark rate in June if the economy warrants it”. In other words, nothing new was said as the Fed didn’t rule out a rate hike in June previously - all we ever read and heard was that the rates will be increased if the economy warrants it and that the Fed is data-dependent. So, what we read today was no game-changer, even though market participants viewed the above as an indication that the chance for a rate hike in June increased. The USD moved once again to its April highs while gold and silver declined, but not in a really profound way. Without a breakout in the USD Index, nothing really changed and the USD Index is still vulnerable to a short-term pullback. In other words, what we wrote in today’s first Gold & Silver Trading Alert remains up-to-date.

Based on today’s closing prices and / or the way market behaves before the close, we may open the short positions, but at this time it doesn’t seem justified to do so just yet.

As always, we’ll keep you informed.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager

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