Gold steadies near $4,333 as Fed opens September meeting amid Middle East oil shock - KITCO
Gold steadies near $4,333 as Fed opens September meeting amid Middle East oil shock - KITCO
Source: KITCO
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DW NOTE
The Fed meets today with oil up 26% in a month and the Strait still closed. Gold at $4,336 is off 18.5% from January's high — hardly the crisis hedge it's sold as. The central bank held rates at 3.5–3.75% all year while inflation ran above target. Now it faces a genuine supply shock with no room to ease and no credibility to tighten further. Monetary policy doesn't work when the problem is barrels per day, not basis points.