Gareth Soloway: Gold Forming Bullish Pattern, Factors Holding Silver Back

TL;DR

The FOMC meeting is crucial as the Fed may start tapering bond purchases and address concerns about the Delta variant. Gareth Soloway expects interest rates to be the first indicator of the Fed's actions, with a potential short-term pullback in the market. He sees gold as a bullish on a breakout, while silver's performance is impacted by industrial demand and economic factors.

Transcript

i'm charlotte macleod with the investing news network and here today with me is gareth soloway chief market strategist at in the moneystocks.com thank you so much for being here online with me today thank you so much for having me charlotte yeah of course it's always great to have you on to talk and we're speaking today on july 27th it's a tuesday ... Read More

Key Insights

• 🤩 The FOMC meeting's key focus is on tapering bond purchases and the impact of the Delta variant.
• ☠️ Interest rates serve as an important indicator of the Fed's actions and can influence market direction.
• 🤕 Gold may experience a breakout and reach new highs if the current inverse head and shoulders pattern plays out.
• 🧑‍🏭 Silver's performance is influenced by industrial demand and economic factors, which may be currently limiting its upward potential.
• 🍉 Long-term consolidation patterns in gold and silver stocks may indicate potential for significant future moves.
• 🙈 Chinese stocks have been impacted by new regulations and geopolitical tensions, but Gareth Soloway sees potential buying opportunities in certain companies.
• 😐 The near-term outlook for silver is neutral, with a potential consolidation phase in the market.
• 🪘 Gold stocks, such as Newmont Mining, could present long-term opportunities if they break out of long consolidation patterns.
• 💁 Gareth Soloway provides swing trade recommendations on his website and can be found on Twitter for more information.

Questions & Answers

Q: What are investors expecting from the FOMC meeting?

Investors are anticipating clarity on the Fed's plans regarding tapering bond purchases and any potential impact of the Delta variant on interest rate hikes.

Q: How are interest rates related to the Fed's actions and market direction?

Interest rates serve as an indicator of the Fed's policies, and if they remain stable, it suggests a neutral to bullish bias in the market. If interest rates start to rise, it may lead to market pullbacks.

Q: What impact could the Delta variant have on the Fed's decisions?

The Delta variant's surge in cases may influence the Fed's approach to interest rate hikes. If the variant leads to economic slowdown or uncertainty, the Fed may delay or adjust its tightening measures.

Q: How is the gold market expected to react to the FOMC meeting?

Gareth Soloway suggests that a breakout in gold may occur if the current inverse head and shoulders pattern is triggered. This could potentially lead to new all-time highs for gold in the short term.

Q: What are the factors influencing silver's performance?

Silver's price is influenced by both its role as a safe-haven asset and its industrial demand. Economic factors and the potential for lower industrial demand due to a decline in consumer spending may be impacting silver's performance.

Summary & Key Takeaways

• The FOMC meeting is important as the Fed may discuss tapering bond purchases and address the impact of the Delta variant.

• Gareth Soloway pays close attention to interest rates as an indicator of the Fed's actions, which may influence the market's short-term direction.

• Soloway sees potential for a breakout in gold, with a price target of $2,100 by the end of 2021, but expects silver to consolidate in the near term due to weaker industrial demand.