The Federal Reserve just released its latest update on monetary policy. FOMC officials left benchmark interest rates and the pace of asset purchases unchanged as widely expected, but changes to language in the press statement is fueling some volatility. Specifically, the Fed acknowledged that the economy has made progress toward its maximum employment and price stability goals.
This sets the table for the central bank to start tapering its QE program in the near future as this subtle shift in tone takes us one step further down the taper timeline. As such, gold price action is facing downward pressure as the US Dollar surges across the board of major currency pairs. Treasury yields are pushing higher across the curve too with the two-year jumping to 22-basis points.
