Precious Metals Sit on Highs but Jackson Hole Speech Could Disappoint (SLV) (GLD) (IAU)
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iShares Silver Trust ETF (NYSE: SLV) is moving higher for the sixth day in a row. With the spot price of silver now comfortably above key technical resistance at $30 per ounce, currently $31.18, inventors are wondering what is next for silver, gold, and other precious metals. They may find answers on Friday when Fed Chairman Ben Bernanke makes his planned speech at the Jackson Hole economic policy symposium.
During the event two years ago, Bernanke said the FOMC is prepared to provide additional monetary accommodation, a promise he made good on in November of that year. However, some analysts think the Chairman could disappoint investors who are expecting clear signals.
“The Fed chairman’s Jackson Hole address has traditionally been used more for laying out broad themes than for sending specific policy signals,” said Jim O’Sullivan, chief U.S. economist of High Frequency Economics.
The risk of disappointment is being magnified by minutes from the last FOMC policy meeting, when the Fed said it is prepared to act “fairly soon”. Later statements from a non-voting member of the FOMC said the minutes were stale and do not reflect recent positive economic data.
Regardless of the speculation, there is no doubt that the speech will be widely followed by precious metals traders, and one way or another it could be an action packed week in the space. With gold trading at $1671 per ounce, iShares Gold Trust ETF (NYSE: IAU) and SPDR Gold Shares ETF (NYSE: GLD) are trading flat intraday on Monday. iShares Silver Trust (NYSEL: SLV) is higher by 1.4 percent.
During the event two years ago, Bernanke said the FOMC is prepared to provide additional monetary accommodation, a promise he made good on in November of that year. However, some analysts think the Chairman could disappoint investors who are expecting clear signals.
“The Fed chairman’s Jackson Hole address has traditionally been used more for laying out broad themes than for sending specific policy signals,” said Jim O’Sullivan, chief U.S. economist of High Frequency Economics.
The risk of disappointment is being magnified by minutes from the last FOMC policy meeting, when the Fed said it is prepared to act “fairly soon”. Later statements from a non-voting member of the FOMC said the minutes were stale and do not reflect recent positive economic data.
Regardless of the speculation, there is no doubt that the speech will be widely followed by precious metals traders, and one way or another it could be an action packed week in the space. With gold trading at $1671 per ounce, iShares Gold Trust ETF (NYSE: IAU) and SPDR Gold Shares ETF (NYSE: GLD) are trading flat intraday on Monday. iShares Silver Trust (NYSEL: SLV) is higher by 1.4 percent.
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