June 16, 2021

Metals and equities plunged in unison after the Fed raised their inflation forecast from 2.4% to 3.4% while Treasury yields, unsurprisingly, spiked on the news.  Gold fell to its lowest level in over a month and is currently trading under $1,840.00.  The Dow plunged 350 points but has since recovered some of its losses, currently down 180 points for the day.  The S&P 500 and Nasdaq are trading nearly flat after rebounding from their selloffs after today’s Fed decision.  Even with updated inflation projections, the Fed’s outlook related to the labor market and economic growth in general,  remains very optimistic, putting downward pressure on metals.