Fed steady on policy, in line with expectations. Gradual increases in Fed funds rate warranted. Core inflation remains soft.

USAGOLD/Peter Grant/11-01-17

The Fed held steady on policy as was widely expected. The door remains open for a December rate hike, but soft inflation is still a concern.

“On a 12-month basis, both inflation measures have declined this year and are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.” — FOMC Statement

That level of concern will likely prove insufficient to move the needle on December rate hike expectations.

The drop in September nonfarm payrolls — the first in 7-years — was mentioned, but is being viewed as transitory. The Fed sees the labor market as continuing to strengthen.

Both gold and silver have edged modestly lower within their respective intraday ranges since the release.

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