gold stocks federalreserve fed Gold price will ‘collapse’ today if the Fed makes this crucial decision – Adrian Day’s FOMC preview
The Federal Reserve is likely to raise the Federal Funds Rate by no more than 75 basis points at this week’s Federal Open Market Committee meeting, despite the markets having priced in a higher chance of a 100 basis point increase following last week’s Consumer Price Index report, according to Adrian Day, President of Adrian Day Asset Management and Portfolio Manager of the Euro Pacific Gold Fund.
Day’s comments come as the August headline CPI declined slightly an an annual percent change basis to 8.3%. Core CPI, which excludes food and energy, climbed to 6.3%, up from July’s 5.9%. Day said that the unemployment rate has in the past been low right at the onset of a recession before increasing, and therefore a low unemployment rate is not itself an indicator for a healthy economy.
While retail sales increased by 0.3% last month, Day said that this actually signals a decline in consumers’ purchasing volume.