FLASH GAGE- Fed Notes Send Gold Up

The January Fed minutes have been released. Here are the highlights:

  • Further “gradual” increases in rates are expected
  • Members debating whether inflation will be an issue
  • Members are less hawkish on future rates
  • The price of Gold and equities are on the rise after the news

Anytime the Fed sends out a signal that the Street interprets as “DOVISH “ both the price of Gold and Equities will rally.

After the news, the U.S. Dollar sold off from its highs and the yield on the Ten-Year Treasury Bond was back below 2.9 percent after reaching an intraday high of 2.9147 percent.

Enjoy the rest of your day.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.