After the latest Fed statement , commodities trader Dennis Gartman reveals the important takeaways for anyone trading gold or silver.“The Fed has effectively taken QE3 off the table for at least another month and probably for the foreseeable future,” Gartman says. “And they have said inflation remains subdued.” That's what precious metals traders must know.
In other words, two bullish catalysts are out of the gold market; there’s no reason for gold bugs to buy gold as an inflation hedge and there’s no reason for currency traders to buy gold as a weak dollar trade.“Gold was trading $1640 right before the report and then it fell all the way down to $1626 after,” says Gartman. That's telling you something.
Trader Steve Cortes believes the same theme applies to silver. “I don’t think the Fed does a thing with QE3 before the election. And you can see it from the action in silver. It broke below $30 for a time.”
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