Gold and Silver rise on back of FED’s failure to raise interest rates.

Gold and Silver rise on back of FED’s failure to raise interest rates.


Welcome to illuminati silver, we tell you
the truth about silver. Today is Thursday 17th March 2016 and we are
briefly covering the ramifications of the FED not raising interest rates yesterday.
After a 2 day meeting the Federal Reserve held interest rates steady on Wednesday and
cut the expected pace of future monetary policy tightening as a weak global economy caused
some concerns. The bank said that a moderate economic expansion
and “strong job gains” would make it appropriate to hike rates over the year. It appears that
policy makers are now comfortable with two quarter-point rate rises by the end of 2016.
Janet Yellen the FED Chair stated: “I am wary and have not yet concluded that we have
seen a significant uptick that will be lasting,” ……..The U.S. economy has been very resilient
in the face of shocks … That is important………proceeding cautiously will allow us to verify” that
the economic recovery remains on track.” Once again concerns over Japan, Europe, and
the ongoing slowdown in China dominated their discussions.
Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York felt that the
tone was ‘more dovish’ than the markets expected.
The dollar fell sharply against a basket of currencies after the statement. Yields on
U.S. Treasuries dropped across the board, while stock markets rallied. The S&P 500 closed
at its highest level since Dec. 31st. In terms of statistical data, policymakers
projected weaker economic growth and lower inflation this year and lowered their estimate
of where the targeted lending rate would be in the long run to 3.30% from 3.50%. Unemployment
is expected to fall to 4.7% by the end of 2016 and again further in 2017 and 2018. Forecasts
for inflation were also marked down for this year to 1.2% from 1.6%, but see it recovering
to close to the central bank’s 2% medium-term target next year.
Gold moved up rapidly on the news from around the $1229 level to $1260 and is currently
standing at $1265 an oz, and silver also jumped from the $15.22 level to $15.60 and is currently
standing at $15.66. The dollar index fell from around the 95.70 level and is currently
standing at 95.10. So we can see that as we stated in January,
the FED is unlikely to raise rates 4 times this year and have downplayed their predictions
to twice. Whilst some are saying they won’t raise rates at all, there is still the possibility
of perhaps one quarter point raise later in the year, in our view. Meanwhile we are watching
others countries to see their response to this, and are looking out for any further
increases in negative interest rates. The FED is playing quite a clever game. They are
achieving slight dips in the value of the dollar to help exports and the stock market,
not by reducing rates but by building up expectations of higher rates and then dashing them.
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of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of
its owners.

19 Comments

  1. My question is simple: What does this mean for the prices of silver and gold over the next few months?

    Usually, towards the middle/end of the summer, we see pricing headed lower, so I'm hoping for that, but if the bull breaks its chains?

  2. Did you see the Philly Fed this morning? Spiked the most in 11 years. LOL! Can you say "seasonal adjustment", and/or defense spending WAY up? My financial advisor (ex Goldman Sach's employee), told me to expect a Fed rate hike in June. That means the precious metals will get "monkey hammered" this summer. Great buying opportunity come June-August. But, he said they expect the Fed to cut rates back to 0% by the end of the year. I also asked him who wins the White House? He said the traders on the floor expect Clinton to win. So, as a follow-up, I asked what to expect from the markets then? Answer: huge rally. LOL! They expect to see a huge government stimulus next year (i.e. infrastructure projects).

  3. watch igold for chart analysis. silver needs 16.50 and 18.50 to beat previous highs. Gold 1300 psycho-barrier before previous highs over 1300. look for consolidation. gold is jumping looking to consol at previous highs. Silver is bottoming and turning, following gold.

  4. Raising hopes is one of the few arrows the Fed has left. They can sit around in  the hallowed FOMC board room and lie to themselves but one glance out the window  into the real world sends shivers down the spines of these Bookworms. Real people are suffering out there, it is not pretty for them and their families. Janet Yellen can talk a good game but in the end she knows very well that the markets would throw a fit if rates were hiked further. In fact we may see that 1/4% rise from last year be taken back off the table sometime this year if storm clouds return.

  5. Per I/S,  Silver is just a "industrial" metal but yet its up over 5% since  yesterdays FED announcement.  Guess there must have been a Sky Rocketingof electronics ordered overnight!!!???I mean, its not like the BIG Money see's Silver as a safe haven like it does Gold, right?AT least, not according to I/S..

  6. 9 years and a rise. i except there target will never be reached even tho they say its a projected target. i project alarm bells ringing 2007 anyone?

  7. i will continue to buy until silver hits 40$ then im a holder and at 60$ im a seller but until then im a BUYER HAND OVER FIST

  8. Do you think Silver will come back down after April when the feds decision to raise interest rates fades away and the global demand for precious metals and commodities sloops down as the world economy slows down? Harry Dent predicted a while back that precious metals would rally into April then deflation would bring commodities back down even lower. Whats your opinion illumanti Silver?

  9. You've said silver was moving lower for some time now IS…. This move above $16 would seem to 'Trump' your view. I think I will keep doing as I always have and buy buy buy PM with any and all extra resources on hand.

  10. Watch oil! The Wall Street peddlers are saying it could spike to $75 by the end of summer. If it does, it is our view that this will have a negative impact on the US consumer/economy.

  11. Anybody want to make guesses for fun about how much the gold and silver prices jump between June 14th and June 16th this year? I'm going to guess 6% for both.

  12. This economy is exactly like having an egg taped to the gas pedal in your Ferrari. You'd love to put your foot to the floor, but the egg will break if you do. It's the fed that taped the egg to our economy with their autistic policy blunders.

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