by Craig Hemke, Sprott Money:
Much of the talk surrounding gold thus far in 2020 has focused upon geo-political and pandemic risks. While all of this is relevant to price in the short-term, the discussions being held by the Fed’s FOMC this week will have a much more durable impact.
At this point, I wouldn’t expect any change to the Fed Funds rate on Wednesday when the meeting concludes. The Fed just assured us last month that they had “found a stable rate” and that rates should remain unchanged in 2020. Rrrrright…until they lower them again. And this is coming, possibly as soon as the next meeting in March.