Sunday , August 14 2022
Home / SNB & CHF / Gold Price News: Gold Down 1% in Wake of More Hawkish Federal Reserve Meeting Minutes

Gold Price News: Gold Down 1% in Wake of More Hawkish Federal Reserve Meeting Minutes

Summary:
Gold price fell to ,808 an ounce in the wake of the release of the minutes of the December Federal Reserve meeting, having hit an intra-day high of ,829. Silver price fell to .72 an ounce from an intra-day high of .26. Gold and silver have continued to sell off this morning with gold trading as low as ,794 and silver trading down to .14. The FOMC minutes showed a much more hawkish Fed than markets had been expecting. The minute suggests that the Fed could be very aggressive in reducing their tn balance sheet. They specifically highlighted their concerns with inflation (no longer transitory). Why Buy Gold In 2022Watch Stephen Flood on GoldCore TV [embedded content] The minutes did not put any timeframe on when they might begin this reduction.

Topics:
Stephen Flood considers the following as important: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

This could be interesting, too:

Swissinfo writes From high street to metaverse: finance embraces ‘bank killer’ technology

Markus M. Müller writes Zur Lage: Fragen, Fakten, Erkenntnisse, Konsequenzen – eine Auswahl

Jakub Bozydar Wisniewski writes Why the “New World Order” Is Impossible to Implement without Creating Mass Chaos

finews.ch writes Thuner AEK Bank mit stabilem ersten Halbjahr 2022

Gold Price News: Gold Down 1% in Wake of More Hawkish Federal Reserve Meeting Minutes

Gold price fell to $1,808 an ounce in the wake of the release of the minutes of the December Federal Reserve meeting, having hit an intra-day high of $1,829. Silver price fell to $22.72 an ounce from an intra-day high of $23.26.

Gold and silver have continued to sell off this morning with gold trading as low as $1,794 and silver trading down to $22.14.

The FOMC minutes showed a much more hawkish Fed than markets had been expecting.

The minute suggests that the Fed could be very aggressive in reducing their $9tn balance sheet.

They specifically highlighted their concerns with inflation (no longer transitory).

Why Buy Gold In 2022Watch Stephen Flood on GoldCore TV

The minutes did not put any timeframe on when they might begin this reduction. However, they are not scheduled to stop buying assets until February.

The speed with which they are expected to hike rate also looks to be quickening too.

More Aggressive Tightening and Massive Rate Hikes

Comments in the minutes are suggesting the possibility of much faster rate hikes with markets now pricing in a better than 75% chance of the first hike in coming in March of this year, just 2 months away.

They are also pricing in a 60% chance of a second rate hike in June. Also, an over 50% chance of a third in November.

December interest rate futures are even showing a 40% chance of a 4th in December.

There were only some hints as to when The Fed might begin the reduction of its balance sheet and how it might achieve this, with some officials preferring to rely more on balance sheet reduction than rate hikes to remove excess monetary accommodation.


Tags: ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Stephen Flood
Stephen Flood is the CEO of GoldCore. He is a former Wall Street equity trader and FinTech expert. He has been involved in the precious metals markets since 2004 and has appeared as an expert contributor on CNBC, CNN, BBC, RTE & Bloomberg TV and has had articles published in the Irish Times, Irish Independent and The Sunday Business Post.

Leave a Reply

Your email address will not be published. Required fields are marked *