TMAD Commodites: Precious Metals Rebound On FED Weakening Crediblity

$GLD $SLV $USO $CPER

Hello Traders,

The latest FOMC meeting caught most investors off guard, largely due to the new Fed chair's opaque communication style and avoidance of forward guidance. Compounding these concerns, proposals to reduce the frequency of policy meetings have raised questions about central bank credibility. This uncertainty triggered an aggressive bond sell-off, pushing yields to their highest levels since 2008.

The dollar took a hit as investors officially scratched rate hikes off the table for the rest of the year. That weaker greenback threw a lifeline to battered precious metals, sparking fresh capital inflows after a brutal stretch of selling.

At the same time, crude is sliding again as demand fears mount, dragging U.S. exports down with it. Put it all together, and the current macro backdrop is carving out a temporary floor for gold and silver.

POSITIONING UPDATE

GLD 0.00%↑ GOLD ETF