Gold and silver, for yet another day, are feeling a good bit of downside pressure due to a lack of any fresh economic or geopolitical news. In general, this week is devoid of any major economic data, and apart from Friday’s global central bankers meeting, there isn’t all that much for investors to focus on. With that said, today may offer a bit of respite from the subdued market atmosphere thanks to the latest FOMC minutes being made public. It will be interesting to see if the Fed’s report sheds any more light on the future of US interest rates.
FOMC Minutes, Jackson Hole Meeting Catching Marketplace’s Attention
Because we are in the middle of August, it should come as no surprise that the marketplace is as quiet as it is at present. With most investors and businessmen using this part of the summer as a time to take a vacation, the volume of daily trades is simply not like what it is at most other times of the year.
With that said, the market will still find plenty to focus on, and today that focus has shifted to the release of the FOMC’s minutes from their latest meeting. As has been the case for the last two months or so, investors the world over will be looking for any clues with regard to when the Federal Reserve is thinking about raising interest rates in the US. At this point there is a difference of opinion, with some people thinking rates will be risen after next June and others thinking the rate hike will come sometime sooner. While the USD index and US equity markets are on the up and up as of the writing of this post, most people are holding their position ahead of the Fed’s minutes.
Looking ahead to the rest of the week, investors will be paying close attention to the global central bankers meeting being held on Friday in Jackson Hole, Wyoming. Some of the world’s most influential bankers will be in attendance and Fed chairperson Janet Yellen is expected to address the crowds. As you probably could have guessed by this point, investors will be paying close attention to anything and everything Ms. Yellen has to say.
ECB president Mario Draghi is also expected to speak in Jackson Hole, and with EU economic data as poor as it has been recently, I have little doubts that investors will be hanging on his every word.