October FOMC: Jobs Report & Interest Rate Hike

December 16th will be the final Federal Open Market Committee (FOMC) meeting of the year. At the most recent meeting that wrapped up October 28th, the FOMC made strong suggestions that an increase in interest rates may finally come at that last December meeting.

Strong Jobs Report

Federal Reserve chairman Janet Yellen has suggested throughout the year that an interest rate hike is in the future, but the lower than expected jobs numbers and struggling markets abroad have so far stalled the expected announcement from the Fed. Such strong encouragement from the Fed to prepare for a hike, combined with the job reports, points towards the Fed’s impending move – the first interest rate hike in nine years.

The case for an increased interest rate is strengthened by the most recent jobs report which came out Friday, November 6th.  The report shows a new low in the unemployment rate at 5%, while 271,000 new jobs were created in October.  Poor employment expansion earlier in the year factored heavily into the stall in interest rates.

2015 Gold Price in Review

The spot price of gold bullion, in response to the mixed messages of the Fed this year, has dropped over the course of 2015, falling as the market prepares for an interest-rate hike and then slightly spiking as delays have continued.

Of course, all investors know that a lot can happen to both the market and the gold and silver prices between now and December. China’s markets are still low, limiting American exports. And November’s jobs report could be different.

Either way, both gold and silver prices are currently very low, with some predicting that gold will hit the same five-year low that reached in July.  

If you’re looking to invest in gold or silver bullion while prices are low, check out Provident Metals’ inventory of bars, coins and rounds.

Where do you think prices will go?  Will there be a rate hike in December?  Let us know in the comments below and as always, happy stacking!