Precious metals moved lower yesterday in light trading as the market was unable to build on Monday’s gains. The weak platinum and palladium market appear to be weighing on gold and silver as well with platinum falling to a six-year low and trading at a $105.00 discount to gold.
Today is FOMC day, and while a rate hike today would be a shocker, the press release later today will likely address the committee’s current take on the recent upturn in economic data, its forecast for job growth, economic activity, and inflation, and perhaps even a comment on the ongoing problems within Greece as it relates to the IMF and Eurozone. I expect the statement to continue stressing that a rate hike decision will be data driven, but when we read between the lines I think the conclusion will be a single rate hike is coming this year sometime between September and December. As is always the case, a hawkish tone will rally the USD and pressure our market, while a dovish tone should bring a move higher. In the end, like you, I am rooting hard for any news that brings us direction and a new trading range.