Gold & Silver Liking It So Far As Fed Hikes Rates 25 Basis Points

Here’s an update on the post-FOMC Statement action in gold, silver and the U.S. Dollar…

First up, some mainstream financial press coverage of the rate hike from Bloomberg:

Federal Reserve officials, meeting for the first time under Chairman Jerome Powell, raised the benchmark lending rate a quarter-point and forecast a steeper path of hikes in 2019 and 2020, citing an improving economic outlook. Policy makers continued to project a total of three increases this year.

 “The economic outlook has strengthened in recent months,” the policy-setting Federal Open Market Committee said in a statement Wednesday in Washington. Officials repeated previous language that they anticipate “further gradual adjustments in the stance of monetary policy.”
The upward revision in their rate path suggests Fed officials are looking through soft first-quarter economic reports and expect a lift this year and next from tax cuts passed by Republicans in December. Financial conditions have tightened since late January as investors look for signs that the central bank might raise rates at a faster pace, while forecasters predict stronger U.S. growth and tight labor markets.
The vote to lift the federal funds rate target range to 1.5 percent to 1.75 percent was a unanimous 8-0.
Gold & silver had been slowly rising into the rate hike after the cartel completed their prep work.
The knee jerk reaction was indecisive, and the markets don’t know what to make of it.
Gold & silver popped, then dropped, and popped again:
Here’s the updated Fed “dot plot”:
Here’s changes to the FOMC Statement:
As the initial knee-jerk is coming to a completion, it’s looking good for the home team:
Remember, however, that the Fed has one very important policy tool that will be on display in the embed above: The Jawbone.
We’re about to get our first taste of how Powell can or can’t talk the markets one way or another.
Will this be the start of the rally that my timing has been horrendously off on for two weeks now?
Time and price will answer that question.
Stack accordingly…
– Half Dollar


About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at Paul’s Twitter is @Paul_Eberhart.