Gold Hits 25-Year High
The last FOMC meeting with Alan
Greenspan as Fed Chairman dominated
Tuesday’s economic news headlines. As expected the Fed raised interest rates
25bp for the 14th straight time. The only real news to report from today’s
meeting was that the Fed changed the language of its accompanying statement,
choosing to omit the word “measured”
Consumer Confidence improved more than expected in
while Chicago PMI fell more than expected
In a unanimous vote, OPEC decided to keep official
production levels unchanged at 28.0 Mln bpd.
Treasuries traded higher all morning, before
reversing course after the FOMC announcement. However, a late rally saw
Treasuries close only slightly lower on the session. The US Dollar recovered
some of its earlier losses versus the Euro and Yen as today’s statement was
initially interpreted to mean that the Fed may not be done raising rates.
All the energies pulled back today, with the OPEC
news and mild weather cited as the primary reasons.
Gold hit 25-year high today, boosted in part by
investor concerns about the situation in the Middle East. Silver, which has been
outperforming Gold lately, also hit a new multi-year.
Employment Cost Index Up 0.8% For Q4.
Consumer Confidence Index At 106.3 For Jan. (report).
Chicago PMI At 58.5 For Jan.
Fed Raises Rates 25 Basis Points (report).
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