Gold prices hold steady as investors wait for Fed minutes

Hugh Fox
October 20, 2018

While no countries were officially given that designation, Treasury Secretary Steven Mnuchin cautioned that China was "of particular concern" to the White House, especially pertaining to its lack of currency transparency and the recent weakness of the Chinese renminbi.

Randal Quarles, the Fed's vice chairman for supervision, made a speech at the Economic Club of NY on Thursday, saying that he was optimistic about the USA economy due to a tight labor market and the positive outlook in productivity.

But rates moving above the so called neutral level would provide an added incentive to get shot of the USA currency, because such a move may lead the US economy to slow. The US dollar has strengthened against the yuan in recent months, prompting speculation that this month's report might contain formal claims of manipulation. Shanghai's benchmark stock index tumbled overnight to close at a near four-year low and China's premier warned of risks to the economy.

Under the law that established the Fed, a president can remove a board member "for cause". This is mostly because of the central role the Dollars plays in the global economy because it acts as the reserve currency.

YES: Rising interest rates are rarely a friend to a healthy economy and to the stock market.

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"He is not going over there to tell them to change their plans or their strategy".

Over the past few decades, presidents have typically refrained from commenting on the Fed's interest rate policy, since the central bank is independent and presidential pressure on the Fed typically ends in disaster.

The minutes noted that the tax cuts Trump had pushed through Congress late last year along with the spending increases Congress approved at the beginning of this year were boosting economic activity.

The greenback slightly extended the previous day's gains against a basket of its rivals on the Fed's perceived hawkish stance. Sterling was last trading at $1.302, down 0.71 percent on the day.

Oil prices fell on concerns that the trade war will slow global growth and demand for crude and as US crude inventories suggested ample supply.

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Oil prices fell as the fourth weekly increase in U.S. crude inventories suggested ample supply, while Saudi-U.S. tension and falling Iranian exports kept the decline in check.

"The market doesn't really know what to think at this point". "The world has backed off its highs".

Meanwhile, the S&P 500 Futures traded 0.33 percent lower at 2,807.00 by 10:40GMT, while at 10:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at -3.86 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend).

And Mr Quarles, the Fed's vice-chairman of financial supervision, said he was hopeful economic productivity "could accelerate from its relatively anemic pace of late, sustaining growth without overheating the economy". The benchmark United States 10-year treasury was last seen at 3.2010% from 3.2018%.

Copper fell 1.40 percent to $6,132.00 a tonne. Materials was the biggest loser .SPLRCM , with an 0.8 percent drop.

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