Powell’s speech didn’t directly speak to a December rate hike. However, he did address some weakening trends and stated that he doesn’t want to make a policy mistake (to paraphrase). I took that to mean that if the economy begins to roll over, the fed may pause their rate hiking agenda. What a brilliant move. Previously, the Fed would push and push until they broke the economy and caused a recession. Fed chairman Powell appears to be savvy to previous policy errors and doesn’t want to repeat them – good for him.
Gold is testing the $1210 level after his remarks – a positive outcome for once. As we know, this could reverse instantly, but for now – I like what I see.
Miners could be working on a recognition/confirmation day. That is when participants suddenly recognize a trend change and rush into the market. If true, then miners should rally powerfully throughout the day finishing 3%+ higher and on big volume. It’s too soon to tell if this is occurring, but we should know by 1:00 PM.
I’ll update again around noon.