Tag: the Fed

Fed Officials Say More Hikes Are on The Way, Markets Disagree

Fed Officials Say More Hikes Are on The Way, Markets Disagree

Federal Reserve Chairwoman Janet Yellen says she is planning more hikes in the Fed funds rate, but you wouldn’t know it by watching the markets. So far, the response in foreign exchange, bonds, and equities isn’t what people expected. Markets have always been notorious for behaving unpredictably. But in an age when central bankers micromanage virtually all markets, the behavior could be the result of careful planning. Maybe the recent market action was only unpredictable for those of us outside of the FOMC conference room. Officials hiked rates in December, March, and June. Despite that the U.S. dollar has fallen to its lowest levels in more than a year. The […]

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PRECIOUS-Gold slips to 4-week low on Fed rate hike expectations

Reuters – LONDON, March 7, 2017 Gold hit a more than four-week low on Tuesday as the dollar strengthened and expectations for a U.S. interest rate hike this month weighed, though moves were muted ahead of key U.S. data this week. The precious metal has fallen in five out of the last six sessions as expectations for the Federal Reserve to push ahead with a U.S. rate increase this month ramped up. Spot gold was down 0.7 percent at $1,216.95 an ounce at 1445 GMT, having earlier touched its lowest since Feb. 3 at $1,216.19 an ounce. U.S. gold futures for April delivery were down $8.00 an ounce at $1,217.50. […]

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What in the World Happened to Gold and Silver Prices Last Week?

What in the World Happened to Gold and Silver Prices Last Week?

Gold and silver prices charged higher during the first 6 months of the year. They fell into a rut over the summer, and then hit the skids last Tuesday. Lots of bullion investors are wondering what in the world happened. There are three primary factors driving this price correction. The first is the strength in the U.S. dollar. The DXY index, which measures the dollar against other major world currencies, hit its highest levels since July. This surge, however, is not driven by safe-haven buying as it was immediately following Brexit. That sort of fear driven buying would almost certainly be boosting precious metals as well. Rather, investors are looking […]

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