Gold and silver prices are slightly down today as Federal Reserve Chairman Jerome Powell's positive comments on the U.S economy weighed down gold prices. However Gold is still holding critical support above $1,550 an ounce in the face of record valuations in equity markets.It seems the precious metal market is currently looking for its next catalyst which could be a potential correction in equity markets that could ignite the next rally. In the short term, we don't think that fed is going to cut the rates but there are numerous factors left including (the overextended valuation of stocks where major correction could be witnessed) in order to move gold and silver prices higher. The coronavirus killed over 1,000 people in China and over 42,500 are afflicted however the spread of the illness is getting under control. It seems market participants are calm down on this matter at least now. Powell did say the Fed is closely monitoring the coronavirus situation and said it is likely to slightly impact the U.S. economy. The long term picture of the Gold and silver market is strongly bullish. Significant Gold price appreciation could be witnessed in 2020 and in the coming years including new record highs coming at some point down the road. In the Short term, Gold prices could drop however and in order to take advantage of the move, We are Shorting the gold at the moment hence hedging our existing silver trade.
