June 14th Market Update
Gold and Silver Slide, Fed Meeting in Focus
Gold and silver are down from their Friday intraday highs of $1,902.59 and $28.27 after pressure from a rising dollar. Prices for both would continue to fall over the weekend and into Monday.
Gold is currently near $1,860 an ounce, which is more than a 2.2% decline from its Friday highs. Right now, silver is around $27.89, down more than 1% from Friday. The dollar index (DXY) is stronger, currently trading near a one-week high of 90.94. Additionally, recovering bond yields have contributed to gold’s downturn.
After reaching a 3-month low last week, the 10-year Treasury yield is now up slightly. U.S. stocks are holding steady to start the week, after last week, in which the S&P 500 ended at a record closing high.
There are no significant economic data releases scheduled for today. Looking forward, the two-day Fed meeting is no doubt the most significant scheduled event of the week. Following the meeting, Fed Chairman Jerome Powell will hold a press conference at 2 p.m. (ET) on Wednesday.
Fed members will have decided whether to change interest rates from their current levels, which have been the same for more than a year. While many expect rates to stay the same, forecasts may be affected by rapidly rising inflation rates.
With U.S. inflation being at its highest in thirteen years, Fed officials will likely deliberate on how and when to reduce central bank buying of mortgage bonds and Treasury yields.
In the past, these taper talks have often preceded a more volatile stock market. With little else scheduled in terms of weekly economic events, traders will certainly be eying the Fed meeting and subsequent announcements.