News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Fed's Williams: - There might be longer-term changes in labor supply - The Fed is still in the research phase and is attempting to figure out what a CBDC may be used for
  • Fed's Williams: - As schools reopen, more parents will be able to rejoin the labor market - Jobless benefits won't have a significant impact on labor supply for a long time
  • Fed's Williams: - The number of people being hired is high but there are also a lot of people changing jobs - There are also other labor supply difficulties that are difficult to measure
  • Fed's Williams: - Our goal is to maintain inflation at 2% on a long-term basis - The Fed has the tools to not just raise the balance sheet when required, but also to reduce the balance sheet to appropriate levels
  • Gold prices proved to be the ‘canary in the coal mine’ around the Federal Reserve meeting. Gold’s weakness hinted at a more hawkish Fed, which yielded a stronger US Dollar. Get your $XAUUSD market update from @CVecchioFX here:
  • Fed's Williams: - A lot of the factors that are responsible for holding interest rates lower globally are likely to continue after the pandemic - Inflation spike is mainly transient and driven by the reopening
  • Fed's Williams: -The global economy's supply side is taking longer to react to the spike in demand - The Fed is committed to having low inflation in the US
  • Fed's Williams: - Supply chain interruptions are certainly a problem for the recovery that has to be addressed - We are seeing bottlenecks recede over time
  • Fed's Williams: - I see the economy growing 7% year over year in 2021 - Prices should not continue to increase at elevated rates once they have fully adjusted to the reopened economy
  • Fed's Williams: - The economy hasn't recovered sufficiently for stimulus to be reduced - The economy is improving at a rapid pace and has rebounded faster than expected
Gold Rally All About the FOMC and Quantitative Easing

Gold Rally All About the FOMC and Quantitative Easing

Christopher Vecchio, CFA, Senior Strategist
Gold_Rally_All_About_the_FOMC_and_Quantitative_Easing_body_Picture_5.png, Gold Rally All About the FOMC and Quantitative EasingGold_Rally_All_About_the_FOMC_and_Quantitative_Easing_body_Picture_6.png, Gold Rally All About the FOMC and Quantitative Easing

Fundamental Forecast for Gold: Neutral

Gold posted a modest 1.70 percent gain against the U.S. Dollar this week, though it was the weakest precious metal by far. Silver, on the other hand, posted a massive 8.00 percent rally, as it is becoming increasingly clear that policymakers will continue to deviate from conventional measures to stabilize markets and flood markets with greater sums of monies in the future to backstop an increasingly insolvent financial system. Thus far in 2012, Gold is up 6.50 percent while Silver is up a whopping 15.36 percent year-to-date.

In regards to my second comment, the rally staged by precious metals against the U.S. Dollar this year has revolved around the fact that the European Central Bank has recently expanded its balance sheet to over €2 trillion Euros, in an attempt to buffer the European banking system from a Lehman Brothers-esque collapse in the coming weeks. To me, this effort is nothing more than a misguided attempt to solve the debt crisis with more debt; but if this is the game that is being played, there is little reason to fight it.

Now, with the Federal Reserve’s first policy meeting of the year due Wednesday, it appears that Gold, as well as the other precious metals, are at an inflection point, at least relative to the U.S. Dollar. Over the course of the year, as the ECB is forced to further expand its balance sheet, Gold will rally priced in Euros; however, this may not be the case against the world’s reserve currency.

This Fed meeting carries particular importance, as it is the one at which the Federal Open Market Committee will outline its policy measures for the periods ahead in order to increase transparency. That is to say, given a certain rate of inflation, a certain rate of unemployment, there will be a corresponding Fed funds rate so that the Fed can meet its dual mandate of price stability and maximum employment. Public pressure has been building in the United States to curb the Fed’s excessive lending to the banking sector; I would thus expect a more conservative FOMC on Wednesday, with expectations of more quantitative easing firmly anchored in a darker period that may or may not come to light in 2012.

As such, in the week ahead, given our fundamental outlook, I would expect Gold to continue to rally when priced in Euros (despite its slight pullback this week), though there is likely a major impediment ahead against the U.S. Dollar. If round three of quantitative easing is a far cry from the economic reality which the United States currently faces, Gold could tumble as the U.S. Dollar moves to strengthen significantly. –CV

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.