Gold and silver are starting to rebound after the Federal Reserve made its decision with regard to interest rates. In this particular case, it’s a very interesting turn of events as the rebound has little to do with the Federal Reserve’s decision and more to do with their comments and the future market and economic outlooks. Today, we’ll briefly discuss the Federal Reserve’s decision and why they made it, why it’s having such an affect on the value of gold and silver, what we can expect to see moving forward, and how binary options traders can profit from the trends.
The Federal Reserve Decides To Keep Interest Rates Low
Interest rates have been a huge discussion for investors recently; and many expected the Federal Reserve to increase its rate in September. However, that didn’t happen. For now, rates will stay low; and there are two major factors playing a role in this decision…
Global Economic Outlook – The Federal Reserve must take into account how their decisions will affect the global economy. If interest rates are increased, US consumers will have less money to spend as more money will go to interest. Therefore, our trading partners are likely to feel the pain as US consumers start to purchase less and less imports. However, the global economy isn’t ready for this kind of pressure quite yet. With China, Europe and dozens of other economies struggling, a US rate hike could have sent the global economy on a downward spiral.
US Economic Outlook – It’s also the goal of the Federal Reserve to assist in US economic growth. Unfortunately, it doesn’t seem as though the US is ready for the pressure quite yet either. With the loss of 17,000 manufacturing jobs in August, coupled with declining consumer prices in the month, the Federal Reserve had to take into account how higher rates would affect consumers; and they clearly don’t think that’s a good idea at the moment.
Why This Caused Gold And Silver To Climb
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