Gold, Silver Trend Higher Ahead Of Latest Fed Meeting

Once again it’s time for another Federal Reserve policy meeting, where they provide their latest update on their balancing act between keeping up their fight against inflation and avoiding a recession/banking collapse in response to the higher interest rates.

As many forecasted over the past 10 years during the 0% interest rate decade, it’s become a tricky dynamic to maneuver. We’ve already seen bank failures earlier this year that forced the Fed to launch a new funding facility to take assets that were losing value off of the banks’ balance sheets. And as we will cover in today’s show, the pressure in the banking system still appears to be far from over.

Yet the higher rates for longer have left gold and silver in a holding pattern throughout the year, with silver slightly down on the year, while gold is slightly above where it began in 2023. Both precious metals are rising this morning ahead of the Fed’s announcement, where in particular the market will be looking for the updated Summary of Economic Projections. Which in June continued to suggest that the Fed voting board was still expecting interest rate cuts in 2024 and beyond.

Will the rising energy prices and CPI readings impact what the Fed will do going forward? It’s not an easy position they’re in at this point, which we discuss in today’s show, as well as some recent silver data.

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