METALS OUTLOOK: German Elections, U.S. Political Wrangling To Set Tone For Gold Next Week
By Debbie Carlson of Kitco News
“The Fed is also concerned about the President and Congress being able to work out upcoming fiscal issues (such as) raising the debt ceiling, agreeing on a budget or passing a continuing resolution, so they have a ‘wait-and-see’ strategy until those issues are resolved one way or another and how the resolutions might impact the economy,” said Edmund Moy, former director of the U.S. Mint.
“Gold and silver prices will continue to be volatile through this period of uncertainty. What is certain is that eventually, there will be an agreement to raise the debt ceiling. Because the price of gold has correlated best with the debt ceiling ever since the start of QE, expect that gold prices will have room to rise, though not in a straight line,” Moy said.
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