Are those hawks circling above?

The FOMC meeting which began yesterday has concluded. Information from this last meeting is just surfacing. According to new sources the Federal Reserve raised its forecast target benchmark interest rates for the next two years. Minutes released also issued caution in its growth forecast 2014.

Both the precious metals and equities markets reacted moderately bullish following this news release. However the net result of the most recent news from the FOMC meeting is a sense that nothing new came out of the meeting, and is therefore being viewed as neither extremely bullish nor bearish for gold.

If anything higher interest rates coupled with a higher consumer price index as reported yesterday can only be construed as inflationary factors may way on the economy further down the road.

The current geopolitical uncertainty in Iraq continues. It is uncertain if and how the United States will react and act. The only real certainty is things could get much worse before they get better.

Wishing you as always, good trading,