In a statement Thursday, the Fed said it would raise its discount, or primary credit rate, to 0.75% from 0.5% effective on Friday. The central bank also said that, effective on March 18, the maximum maturity for discount window loans will be shortened to overnight.
.....but gold's reaction did catch my eye.
Gold first did the logical swandive, but then got bought back up. It's after-hours action so maybe the market is too thin to read with accuracy, but the action and then re-action in Au suggests that you shouldn't read too much into the Fed's move. After all, it was expected in March, so even though it's come maybe three weeks earlier than expected it's not a big shocker.
Whatever happens tomorrow, it is shaping up as an interesting day for the metals.
Update: Nice comment from Gary Biiwii. Also, gold futs dropped again...like i say...thin market and we'll get definition tomorrow. It's gonna be a fun day for sure but until then no more silly micromanagement
Whatever happens tomorrow, it is shaping up as an interesting day for the metals.
Update: Nice comment from Gary Biiwii. Also, gold futs dropped again...like i say...thin market and we'll get definition tomorrow. It's gonna be a fun day for sure but until then no more silly micromanagement
