Opinion with Peter Hug
Fed Raises But Speaks Softly
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Featuring views and opinions written by market professionals, not staff journalists.
Metals prices surged after the Fed announced a quarter-point increase in interest rates. The move was likely a classic sell-the-rumor, buy-the-fact trade, as the Fed continued to forecast modest increases in rates for the balance of the year. Fed Chair Yellen seemed somewhat dovish in her tone, but the Fed is expected to continue raising rates throughout 2017 and into 2018. The question will come down to speed, not direction, and here the Fed may step back in the short term until fiscal policies become more defined. Gold has a better technical look to it, but a close above the $1,237 level is required to re-set bullish momentum. $1,218 suggests as the initial support line.