Gold Jumps Most Since Brexit As 'Hawkish' Fed Sparks Dovish Bond Buying Spree
Overheard at the NYFed trading room this afternoon...
Post-Fed, Gold was the biggest winner...
Trannies were ugly all day but AAPL gains supported Nasdaq and The Dow... the efforts to stay green appeared to fail into the cash close...
The Dow ended the day down 1.37 points (0.01%)...
VIX was monkey-hammered lower (despite collapsing bond yields and spiking PMs) to ensure the S&P ended green... but it failed
Treasury yields were sliding early after the dismal durable goods data and then when The Fed hit, yields spiked briefly before plunging to the lows of the day...
Treasury futures show the initial kneejerk selling at The Fed hawkish statement then rip back at the long-end...
With the yield curve flattening significantly - signalling policy error possibilities...
The USD Index tumbled surisingly after the hawkish-tilted Fed statement... Today's drop is the biggest in a month....
With Swissy and Cable surging...
Commodities were already chaotic (oil tumbling on DOE data and silver spiking) but The Fed move sent PMs soaring and crude and copper crumbling...
Leaving crude at its lowest since the failed Doha talks in April...
And Gold and Silver surging most since Brexit...
Over to you Kuroda!!
Charts: Bloomberg
Disclosure: None.
I think the rise in precious metals was more due to them not raising rates than their hawkish tones which tend to suppress gold and silver. Anyways, as we all know by now, their hawkishness turns to doves and free cake by the time they are ever called to execute on it. Another words they lie and deceive on purpose and constantly. The Federal Reserve isn't on your side. Quite the opposite.
Although the market expects one more rate rise this year, I'd even be skeptical of this. The Federal Reserve would probably be happy with a recession than to have to raise rates again and is more than capable of causing one.