Gold And Equities, Bonds Waiting On Fed

New York (July 31)  Today has been circled on all traders’ and investors’ calendars as the most anticipated Fed announcement in years. It happens at 2 p.m. EDT. The markets have priced in a 25-basis-point rate cut, which has propelled gold, equities and bonds higher.

The big question: when the Fed confirms the rate cut, how will the markets react? More than likely, the rallies will continue. Gold and silver should continue their course going higher and making new highs.

The metals are breaking out to the upside. Gold should make a run at $1,500 and silver $17. The patterns are clear, and any pullbacks should be bought until proven otherwise.

After the initial announcement at 2 p.m. EDT, market action will be fast and furious. The moves could be significant in both directions, which often happens after a big announcement. After the news and noise is over, look for the metals to continue on their paths to new highs.

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