Rick Townsley had this to say today on reflection - "We expect the meeting to pass quietly and frankly it's unlikely that we will see any effect on the markets due to anything that comes from these talks."
He goes on to say "Of course the people that set policy are in discussion and are deliberating the economy after their decision last month to purchase mortgage-backed securities to help drive down interest rates over the long-term. Essentially what we are seeing with the MBS strategy is simply a third round of quantitative easing and this is good for gold even if it takes a while to show real movement."
John Flannigan, Vice President of Trading at Accredited FX says “The Fed simply will not do anything in this meeting because they are trying to avoid anything that may be viewed as politically motivated in the run up to the election in the U.S."
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Disclosure: Rick Townsley and other members of the trading team at Accredited FX hold various long positions in gold with different expiry dates and strike prices.
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