Fed reviewing bank trading in physical commodities
This story over the weekend (Reuters version) could have a very significant impact on a variety of financial markets. Obviously the commodity markets will be affected, as indeed will the equity markets through the impact on the bank’s bottom line. The FX markets will be indirectly affected but I think we will have to wait and see what the reaction will be.
Gold certainly has broken resistance. Now USD$1300 is breached, I have targets above USD$1400.
My recent analysis on gold has been updated given the breach of USD$1300