Folks assume Fed is leaning more hawkish than dovish, and will see banks will require a dovish Fed not for proftiable growth, but for the survival of the financial system as global consumer credit (all developed economies including US, UK, Australia, New Zealand) continues to deteriorate. With other central banks (Australia, ECB) also leaning towards cutting to offset slowing growth, it will signal a new upleg in gold. Hawkish jawboning to scare commodities players, although the unsaid is central bankers underlying fear of the global credit system, otherwise they would have just rapidly increased rates with no qualms or consideration for others.
$20.39 (08/07/08)
