After gold futures settled Wednesday, the Fed said it decided to keep its benchmark fed-funds rate unchanged in a range between 0.25% and 0.5%. That was widely expected, but it also hinted that a rate increase was possible at its next meeting in September.
“True to form, they left enough language in today’s release to leave September on the table,” said Hug.
“In my opinion, the judgment of Fed members notwithstanding, what choice do they have but to leave the possibility of a rate hike on the table?,” he asked. “They would look like total buffoons, if they reversed course now.”
To some traders, the Fed’s updated policy statement emphasized a reluctance to lift rates too quickly, in the wake of the U.K.’s decision to exit the European Union, which can be supportive for gold futures.
At 4:30 p.m. Eastern time, December gold GCZ6, +0.82% traded at $1,348.80 an ounce, up by more than $14 from the $1,334.50 the most-active contract settled at Wednesday, ahead of the Fed news.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
0 comments:
Post a Comment