U.S. Dollar vs Precious metals
The US dollar index traded about 0.3% higher this morning while gold and silver prices are slightly lower, decreasing with 0.04% and 0.32%. However, gold and silver trading is still steady after their multi-week streak of losses. The focus of the precious metal market is the upcoming meeting of the Federal Reserve’s Open Market Committee.
Despite the heavy snow storm hitting the US eastern seaboard, the two-day meeting of Fed’s policymaking committee starts today and investors are eagerly waiting for its conclusion. The strong February jobs report presented on Friday is the final confirmation for the Fed that the time had come to raise the interest rates to prevent the US economy from overheating.
Although the rate is expected to stay below 1%, the Federal Reserve’s move still comes months earlier than markets expected due to the continuously improving economic conditions. Fed officials state that the move is not a political message towards Trump’s determination to stimulate the economic growth. However, it’s clear that Fed’s essential point is that it doesn’t want a faster growth.
Stock Market Today
The US stock market had a lower opening this Tuesday morning as the traders are quietly anticipating the FOMC’s conclusion on Wednesday. Traders are focused not only on its interest rate hike but also its forecasts for economic growth and inflation. The Dow Jones Index is down with 0.22%, NASDAQ and S&P both decreased by about 0.4%. Besides, the blizzard may also temporary freeze major market actions, sustaining today’s quieter trading in the US stock market.