Today’s session was typical for a FOMC week open: a high-paced start with opening gaps, followed by fading volume and action.
Given the current market risks, this lower volume makes sense.
Traders are facing a wall of uncertainty, including the potential Iran intervention, recent chaos from the Trump Administration, and the impending nomination of the next Federal Reserve Chair.
However, these factors provided the final fuel for the metals melt-up:
The US Dollar gapped down sharply, surrendering strength to Gold and Silver.
The yellow Bullion reached $5,000, briefly touching $5,130 before correcting. The correction did hit other metals, as seen with Platinum closing down 3%.
Outside of a decent performance in US stock benchmarks, the rest of the market was undecided and rangebound – even FX kept calm despite the huge run on the dollar.
Unless a major catalyst hits before the FOMC Decision (Wednesday 14:00), do not expect much meaningful movement.
In positive news away from the market madness, the body of the last Israeli hostage held in Gaza was found today as the second phase of the ceasefire begins.
