The economic devastation of hurricanes and rising tensions involving North Korea are being overlooked – at least for the time being. Never mind the last week’s predictions of significantly weaker 3rd quarter GDP based on the effects of Harvey and Irma.
The Federal Open Market Committee (FOMC) meets again this week. Fed officials including Janet Yellen have been talking more like doves in recent weeks.
Few expect them to raise the federal funds rate and any weakness in GDP may well provide good cover for holding rates steady through the end of the year.
Over the weekend, we saw administration rhetoric toward North Korea escalate. There are also, unbelievably, more storms brewing in the Atlantic which could threaten the U.S. The U.S. dollar also remains in a tenuous position. The makings are there for some safe-haven buying in gold and silver in the days ahead.
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