FOMC Minutes Barely Move Market

Category: Market Reports
Author Name: Roy Friedman
Posted: 05-22-2015 11:40:00 AM

In front of a three-day weekend we find ourselves with a market again looking for direction. The USD has moved a bit higher, but so far precious metals have been able to shake that off.

The FOMC minutes on Wednesday afternoon provided no surprises and little new information. As such, the highly awaited release barely moved our market and had little impact on all other markets’ intraday trading. While the committee did express concern over a slowing in job creation and economic activity, they did remove key words like “patient” that normally provide support for precious metals and most commodity prices. All in all, I would say the report leaned toward the dovish side and a rate hike for June is off the table. The committee continues to stress that their decision on a rate hike will be data driven, but so far the data does not support a rate hike, especially while consumer confidence and retail sales are falling.

In front of a three-day weekend we find ourselves with a market again looking for direction. The USD has moved a bit higher, but so far precious metals have been able to shake that off. On the flip side, weak economic data has not provided the steam for higher prices. This morning’s consumer price data revealed that the Index has fallen 0.2 percent over the past 12 months which is a further sign that the FOMC’s inflation target will not be met and further delay a rate hike. With gold setting the course, look for support from $1,201.00 through $1,196.00 and resistance from $1,210.00 through $1,215.00.

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About The Author

Roy Friedman

This editorial has been prepared by Roy Friedman of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not prove to be true, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept the foregoing.

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