Gold longer term looks strong Button said that despite the strong likelihood of a pullback in the wake of the FOMC announcement and accompanying data, the yellow metal has already chosen its direction going forward. “Gold has already voted,” he said. “Gold has broken out. It's a buy-the-dips gold market from here on out. And whether it's the Fed or something else, unless there's a true game-changer, that's going to be the game.”
He added that losing one 25-basis-point cut this calendar year doesn’t change the fundamental calculus for traders. “At the end of the day, do I care if the Fed cuts in June or September?” he asked. “All I care about is that I've got a Fed put. If anything goes wrong, I know the Fed's going to cut. And if it's not in June, then it means the global economy is doing great. So, why should I worry?”
Button said that with the precious metal already hitting new all-time highs week after week while most investors are still on the sidelines, he likes the prospects for gold, as well as silver and the mining stocks, once the investment community finally joins the party.
“It's just a wonderful setup,” he said. “You have everything in place for what could be an ongoing, aggressive move higher, including a turn in the dollar. The dollar is still very close to its highs, and so is gold. I really think that in a lot of the metals, when the dollar turns, the money will flow, and suddenly something like $2,500 seems too conservative.”
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