by Keith Weiner
Precious Metals and Central Bankers
The dollar exchange rates of the metals fell this week, with that of silver falling more.
[…] Friday’s trading action was notable, because at first markets (including the US stock market) interpreted comments by Fed Chair Janet Yellen as “dovish”—i.e. low interest rates will continue. This means a rising money supply, and everyone “knows” that that means rising prices. Especially of assets such as stocks and gold and silver.
But then Fed Vice Chair Stanley Fischer reiterated that the Fed may hike rates in September. This means a shrinking money supply, or at least a slowdown in the rate of growth. Therefore… sell. And the markets dutifully did.