Metals Hit Hard By Rate Increase But Recovery Likely Soon

Metals Hit Hard By Rate Increase But Recovery Likely Soon

Warren Bevan  | Dec 18, 2016 01:32

We finally got the rate increase this past week and the Federal Reserve says there are 3 more to come in 2017.

That will only hold true if markets and stocks remain strong and so far, they are.

This rate increase has been fully baked into the cake for a very long time and markets only gave us a brief dip buying opportunity on the news before turning higher once again.

The metals were hit hard on the actual news, but as we’ve seen repeatedly after Fed news, the move is usually a counter-trend move and rarely lasts more than 3 days.

Gold Daily Chart

That said, let’s check into the charts who are holding at support levels, for now.

Gold lost 2.11% as the bearish wedge pattern worked as it should have.

Support on the monthly chart sits at $1,115 and below that is the major resistance level of $1,000 which may well be tested after-all.

The real acceleration lower in gold remains over but we may test $1,000 and see how it goes.

So far, my thinking is we will hold the $1,115 level and build a base from which to move higher but only time will tell.

Silver Daily

Not great action to be sure, but it’s on Fed news so shouldn’t last too long.

Silver was smashed to the tune of 4.43% even though is has a small rounded base which pointed to higher.

I’ve been talking to subscribers for the past week or so about the conflicting bullish silver pattern, contrasted by the bearish gold pattern and gold has clearly won this battle.

$15.90 is support on the monthly silver chart but if that fails then we have to look at the next support level down at $13.80.

Plat Daily

Let’s hope for the best, but trade the reality.

Platinum gained a respectable 2.09% thanks to a strong and key move Friday.

Platinum broke the uptrend line hard on heavy volume but then Friday saw that reverse which is a good sign.

Seeing platinum hit and hold the $900 support level is positive for gold and silver.

Once upon a time in the earlier part of this century platinum led gold and silver, perhaps we are seeing this trend beginning again but it’s too early to say for sure.

Pall Daily

Palladium was clobbered lower by 5.14%, below the $720 support level.

The good news is we held the 100 and 200 day moving averages and may have a quick low in place now.

Seeing palladium move back above $720 would confirm this and be a buy level.

It’s such a busy time of year, but fun!

I doubt I’ll have a weekend letter next weekend, or the next, so I do hope to see you back here, in a stronger metals market, in the New Year and you can always subscribe to get my much more frequent views on the metals along with leading sectors and leading stock buy points within those sectors.

Warren Bevan

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors. is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.