FOMC On Pause

September 27, 2023

by Alasdair MacLeod Gold Money

The FOMC and the Bank of England surprised markets by not raising interest rates this week as expected. Following the FOMC’s decision, gold and silver fell on the back of its hawkish statement before recovering slightly. In Europe this morning, gold was $1926 up a net $2 from last Friday’s close. Silver fared much better at $23.68, up 65 cents. Silver is obviously in a bear squeeze, while hedge funds have become disinterested in gold.

Often, silver leads the way upwards and this may be the case today. The next chart shows how Open Interest on Comex remains low in both contracts, indicating that downside is limited.