The FOMC And U.S. GDP Could Bring Up GLD

The Fed and GLD

This week's FOMC meeting won't include a press conference or an update on FOMC members' economic outlook. But this meeting could bring back up, even if for a short term, the price of GLD. In the previous meeting, the FOMC members seemed to have revised down their expectations for the progress of the future rate hikes, according to the median derived from the dot plot. For now, based on long-term treasury yields, the market places an 11% chance of a rate hike in the July meeting, a 25% chance in September, and 42% in October.

Source of data: FOMC's site

The minutes of the recent meeting, however, were construed a bit more hawkish by some analysts. In any case, the result was that both GLD and long-term treasury yields haven't gone anywhere in recent weeks. This time, the FOMC meeting could have a much more subtle impact on the bullion market. If the FOMC releases a more dovish-than-expected statement - especially considering the recent NF payroll came short of market expectations - this could drive up GLD.

Read More: http://seekingalpha.com/article/3112516-the-fomc-and-u-s-gdp-could-bring-up-gld