December 17, 2018 -- The gold and silver markets gave up modest ground last week as U.S. stocks continued their fall. The DOW lost 500 points on Friday, giving up gains from earlier in the week and then some. Metals picked up some buyers from among those fleeing the equity markets.

However, the performance was tempered by another rise in the U.S. dollar index. The Federal Reserve Note made new highs for the year relative to other major fiat currencies. Some spooked investors are turning to metals, but more are parking in cash -- at least for now.

The dominant story in markets this week will be the Federal Open Market Committee (FOMC). Nearly everyone expects officials to hike rates by another quarter percent.

However, the recent carnage in stock markets means pressure is rising for the Fed to end the current cycle of tightening very soon.

Up until a few weeks ago, Fed watchers were all but certain the FOMC would deliver 3-4 additional hikes in 2019. Now it is anyone’s guess as to whether there will be even one more rate increase next year. Wednesday’s press conference will be closely watched.



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