This week, the Fed’s FOMC increased the Fed funds rate by 0.25%, to a target of 1% to 1.25%. This was so certain to happen it was fully discounted in the markets. The FOMC also gave some details about its aspirational plans to reduce its balance sheet over time. Nonetheless, the dollar rallied, helping to push gold and silver lower.
Having backed off from last week’s challenge of the $1300 level, gold fell a further $13 this week to $1254 in early morning trade in Europe this morning. Silver fell a further 44 cents over the same time scale.
This post was published at GoldMoney on JUNE 16, 2017.