The Federal Reserve announced at the close Thursday it will be increasing the cost of emergency funds by rising the rate by 0.25 a percentage point. A really small hike so in the scheme of life it isn't a big deal. But the symbolism may be stronger.
The markets rallied into the close Thursday is not accident, that was the market makers (in my opinion) pumping stocks to prepare for the "bad"news. Gold/resources stay out of the way, and I am glad I was so jittery to join into gold stocks. Between IMF announcing selling gold, and US "signaling" protecting the dollar, gold should take some hits.
But like anything, we'll see how far things play out, just "for now" stocks lower, gold lower, USD higher. Remember, a strong USD is GOOD. A strong dollar means cheaper imports including oil, food, metals, and yes, most manufactured good (sigh) such as computers, cars, etc.
A weak dollar over a long term would mean gas above 5 bucks a gallon, etc.
A good rally for gold, as the mental moved up over $18.oo in the past 24 hours...
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