Gold is down a tad in the overnight Asian market – off about $2 at $1318.60. Silver is steady at $17.60. A quiet night in the gold market thus far.
This week we have the Fed meeting – always a tricky, unpredictable event for the precious metals. Interest rates apparently are off the table. The Fed, though, is expected to announce its plan to liquidate the $4.4 trillion in assets it acquired putting out the fires of the 2007-2008 debt crisis. Alan Greenspan once referred to it as a “pile of tinder.” QE comes back to haunt the Fed and the financial markets – the ghost of crises past.
Quote of the day
“It [the Fed’s balance sheet liquidation program] could be more disruptive than people think. . .That is a very different world you have to operate in, that’s a big change in the tide. All the main buyers of sovereign debt over the last 10 years – financial institutions, central banks, foreign exchange managers – will become net sellers now.” – Jamie Dimon, JP Morgan
If you are a chart enthusiast, we have a couple pages at the USAGOLD website worth bookmarking. These charts are presented in conjunction with the St. Louis Federal Reserve (FRED) and update automatically through the magic of the internet. Both pages are handy references used regularly to settle after-dinner disputes among family members and friends about the direction of the economy.