All eyes are locked onto this week’s FOMC meeting, set for Tuesday and Wednesday. The clear consensus appears to be that the Federal Reserve will slightly raise U.S. interest rates. Most traders and investors are also watching to see if the Fed acts to reduce its overblown balance sheet of government securities.
As of Monday, the CME Group’s Fed Watch Tool is predicting a 95.8 percent chance of a hike in the neighborhood of 100-125 bps. A near certainty, it would seem, but the Fed has surprised us before. The full statement will be read Wednesday afternoon.
In anticipation of the FOMC meeting, the gold market is a tad listless, with limited buying interest. At last check, prices for gold are down around $1,266.90. The Palladium market deserves some attention, as it recently reached a five-year high, and is currently hovering around $905 an ounce.
We’ll have much more to discuss this Wednesday, as Fed Chairwoman Janet Yellen will give us the latest interest rate news. Stay tuned…
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