by Alasdair MacLeod
Gold Money
After trading sideways until Wednesday, gold broke out above its recent consolidation level following the Fed’s 0.25% rate increase on Wednesday. And yesterday morning, gold rose briefly to $1959.7 before falling back to $1911. In European morning trade, it was at $1910, down $17 from last Friday’s close, and silver was $23.42, down 15 cents on the same timescale.
The Fed raised its funds rate by 0.25% on Wednesday to 4.5% to 4.75%. The move was widely expected, but the market initially interpreted the accompanying commentary as dovish, which knocked the dollar’s trade weighted index below 102. This is next.