The USD is a bit weaker as the new week begins but the changes, although almost universal, are modest and there is no conviction of any sort amongst the forex dealing rooms of the world. All attention is obviously focused upon the impending FOMC meeting this week, and we do mean “All attention” for this meeting has become almost comically over focused upon. We are to the point where the vast public knows that there is an FOMC meeting this week and the public is looking toward the meeting as something tectonic in nature, fearing that the nation’s very existence depends upon this meeting and that all economics of the next year or more depends upon the outcome of this meeting.
All of these things do not depend upon this week’s FOMC meeting and we need to be aware of that fact. This is simply one of many such meetings that the Fed has on a regular basis. The very existence of western culture does not depend upon this meeting, and indeed little if any of the direction of the US and/or the global economy hinges upon this meeting. We all need to sit down; take a very deep breath and relax. The sun will still rise on Friday morning, the day after the meeting; cats will not lie down with dogs on Thursday afternoon after the meeting; the Cleveland Browns will still be a losing NFL football team next Sunday following the meeting’s end on Thursday and the law of gravity will still exist. These things we can assure everyone of.
Regarding gold, it has no friends; but then again neither has silver any friends, nor palladium, nor platinum, nor copper nor any of the metals. Indeed, gold has no friends in US dollar terms, nor in Yen or EUR terms this morning. There may be some aid to the gold market with the weaker US dollar, and there may be further aid as the grains try to rally, but with crude oil continuing to meander and with stock prices weaker, today looks like an ill day indeed for gold.
This article was written by Dennis Gartman. Gartman is editor and publisher of The Gartman Letter, and a strategic partner with the AdvisorShares Gartman Currency Hedged Gold ETFs (GEUR & GYEN) who lends his institutional insight to educate advisors and investors about trading gold in different currency terms.