Last week’s decision by the Fed to raise the benchmark interest rates by 25 basis points was both predictable and expected. What isn’t yet clear is what the FOMC is planning for its subsequent meetings this year. Lots of prognosticators are now seeming to look past the individual Fed decisions while casting for a long-term pattern. While the U.S. economy continues to hold serve, there is much apprehension across the pond with plenty of financial issues swirling. Greek bailouts, Italian market troubles and the first round of formal Brexit negotiations for the UK get underway today—despite the disastrous results for Prime Minister Theresa May’s recent snap election.
Adding to all of this uncertainty comes the following news items from just yesterday. A U.S. warplane shot down a Syrian fighter jet that had just bombed American-backed coalition soldiers. A popular tourist resort in the African country of Mali was hit by terrorists and Iran’s Revolutionary Guard targeted ISIS fighters in Syria by launching missiles in retaliation for attacking Tehran on June 7. And back in England, an apparent terrorist attack by a driver who struck Muslims leaving Ramadan services, killing one.
Lots of instability out there on the global geopolitical front. Spooked markets abroad could elevate the precious metals market, so stay tuned.
As of this morning, the gold market is holding relatively steady from the end of last week. At last check, prices for gold are hovering around $1,248, while silver has slid back to under $16.60, palladium continues to sink from last week’s supply-induced rally and it currently at $864.
There should be plenty more to discuss this Wednesday, as it seems we haven’t even scratched the surface of our own political turmoil at home.
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