DMR–Gold sidetracked in early trading by upcoming Fed meeting

Gold trundled to a sidetrack this morning in anticipation of this week’s Fed meeting scheduled to begin tomorrow and end with a statement and press conference on Wednesday.  The metal is trading as this is posted right at $1300 – down $3.30 on the day.  Silver is down 8¢ at $15.66. Gold historically spends Fed Week in either a wait-and-see mode or moving to the downside.  On rare occasion though, as was the case in December, it pushes higher.  Taking Friday’s Fed-based move to the upside into consideration, it will be interesting to see how the market reacts this time around.  The dollar index seems to be similarly sidetracked this morning despite fairly strong moves higher overnight in both the yuan and yen. Commodities and stocks are down sharply.  Such as it is, we will sign off for now and report back if anything of interest develops later this afternoon.Quote of the Day
“So why gold? People buy gold to protect their savings not because it is rare, yellow or shiny, but because of what it isn’t. Gold isn’t debt, equity or any other financial promise. It doesn’t rely on anyone else’s survival to exist. It can’t be destroyed any more than it can be created at will. Call it the ‘gut level case for gold bullion’ – 

Chart of the Day

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