Fed Raising Interest Rates; Gold Going Up
Gold News Daily
3.22.18 – Fed A ‘Wet Blanket’ For Stocks
Gold last traded at $1,327 an ounce. Silver at $16.38 an ounce.
NEWS SUMMARY: Precious metal prices stabilized Thursday after rising sharply following the Fed statement and rate hike. U.S. stocks traded sharply lower as China trade war fears and tech troubles worried investors.
Gold Gains After Fed Decision –Wall Street Journal
“Gold prices extended gains in aftermarket trading Wednesday, boosted by a less hawkish than expected Federal Reserve and worries over a brewing trade war with China. Gold for April delivery was recently up 1.6% at $1,333.20 a troy ounce in electronic trading. Fed officials said they would increase their benchmark federal-funds rate to a range between 1.5% and 1.75%, as widely expected. They also said they have penciled in a total of three rate increases for this year, a less aggressive outlook than some investors were anticipating. A slower-than-expected pace of rate increases tends to buoy gold, which struggles to compete with yield-bearing assets when borrowing costs rise….Investors view a growing trade conflict ‘as a huge negative,’ said Ira Epstein, a broker at the Linn Group. Those concerns are buoying gold, a popular destination for nervous market participants, Mr. Epstein said. A further boost for gold came from a falling dollar.”