(USAGOLD – 12-6-2018) – The Dow Jones Industrial reversed most of an 800-point decline in the the last hour of trading the result of a Wall Street Journal report that the Federal Reserve is “considering whether to signal a new wait-and-see mentality” on interest rates. The rate increase for December is likely to be implemented, but the March meeting might result in a pause. The gold market was closed at the time the WSJ released the article. It reopens at 4pmMT and we will see then if the Fed’s new position has any immediate effect.
The gold market has been in a minor uptrend since the Fed chairman spoke at the Economic Club of New York on November 28th and indicated the possibility of the Fed taking a more dovish approach to interest rates. Today’s Wall Street Journal article appears to be a deliberate move to drive home the point and reverse persistent stock market weakness. We will see over the next several hours and days if there is a collateral effect in other markets, including gold and the dollar, and if the stock market reversal has any staying power.