Precious metals are not moving too far in any one direction, but are definitely showing some signs of weakness as of the writing of this post. With the release of the Fed’s minutes from their latest policy meeting right around the corner, most investors are simply holding their positions and waiting to see what the minutes have to say. With that said, however, both the USD index and most US equity markets are continuing to edge ever so slightly higher. This week has already proven to be pretty quiet and it is shaping up like such will remain the case throughout the duration of the week and month.
FOMC Minutes Distracting Investors
This week is not expected to bring about much in the way of economic data, but today is an exception due to the scheduled release of the FOMC’s minutes from their latest meeting. As has been the case for the past few months, investors will be picking the minutes apart in hopes of hearing some more information with regard to the future of interest rates in the United States. At present, most everyone knows that interest rates are soon to be risen, but no one is quite sure exactly when it is going to happen. Some are convinced that the rate hike will occur sometime next summer, but others think it is coming much sooner than that.
In my opinion, I don’t think the minutes will offer much insight with regard to the future of interest rates. Instead, I feel as though they will reiterate the Fed’s already well-known stance. In the past, high-ranking members of the Federal Reserve have made it clear that once the employment sector shows sustained signs of improvement, then and only then will interest rate hikes be considered.
Looking ahead to the latter parts of the week, there really won’t be too much for investors to pay attention to. The exception to that, of course, is the global central bankers meeting scheduled to kick off on Friday in Jackson Hole, Wyoming. With Federal Reserve chairperson Janet Yellen expected to make a speech, you can bet that investors from around the world will be paying close attention.