December 16, 2020

Today’s Fed meeting was not unexpected, but it did rattle markets, at least initially.  Metals and equities dropped after the Fed announced it would leave rates unchanged and continue its strong treasury buyback program to combat the economic effects of the pandemic. Equities rebounded to levels near where they were trading before the Fed’s announcement, while gold and silver surged to much higher levels than before the decision. Stocks finished mix with the Dow down 45 points and the Nasdaq up about 0.50%. Gold is trading at $1,864, its highest level since November 22, and silver is trading at $25.45, its highest level in over a month.