Price of Gold Breaks Slump on FOMC Decision In its first meeting with Jay Powell in the chair, the Federal Open Market Committee (FOMC) of the United States Federal Reserve raised the nation’s benchmark interest rate by a quarter-point to a range of 1.5 to 1.75 percent, exactly one point higher than one year ago at this time. And, so far, it appears it will be exactly one percent higher next March, as the central bankers indicated no change in their forecast of three increases in 2018. They did, however, hint of more aggressive rate hike activity in the next two years. Two hours later, gold prices closed the day up more than 1% from a three-week low. Silver added 2.47% at $16.63 an ounce, surpassing a six-day high, and the U.S. dollar weakened to a session low. Wait, What? Isn’t Gold Supposed to Drop when Interest Rates Increase? Precious metal strength is being attributed to the Fed’s outlook that the US economy is not the galloping locomotive that some quarter...
from GoldBroker.com https://www.goldbroker.com/news/interest-rate-up-again-fed-sticks-2018-forecast-gold-spikes-1286
No comments:
Post a Comment