Gold trading is muted this morning for the Fed meeting — looking toward 2PM Eastern time when the Federal Reserve releases its decision on interest rate changes (no change expected this time), and notes/comments/minutes on the latest meeting discussion. The biggest item on the table is how the Fed plans to unwind its massive stash of Treasury bonds, notes and trinkets accumulated during the famous QE financing schemes.
The Quantitative Easing plans, or Ben Bernanke Bailout, resulted in the Fed’s current $4.5 Trillion-with-a-T balance sheet. That’s a lot of knicknacks and baubles for sure. Until we see the Fed meeting you can expect gold to drift today. Then, who knows what will happen. Today’s featured article should give you some insight into the situation at the Federal Reserve, and what might happen in different scenarios.