Fed says stimulus wind down to begin ‘relatively soon,’ leaves rates unchanged

The Federal Reserve laid the groundwork Wednesday to begin winding down shortly the massive stimulus program it embarked on to rescue the economy from the financial crisis. As expected, the Fed also unanimously declined to raise interest rates this month. After its two-day policy meeting, the Federal Open Market Committee released a statement containing key language that points to starting the move in September. At that time, the central bank will begin rolling off the $4.5 trillion portfolio...
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Oil Surges Above $49 as Supply Draw Shows Market in Better Shape

Oil closed above $49 a barrel for the first time since May on growing optimism OPEC’s supply cuts are trimming a supply glut. Futures climbed 0.6 percent in New York for a fourth day of gains. Kuwait joined the U.A.E. in promising to pump less oil after Saudi Arabia called on OPEC producers to cut more supply. U.S. crude inventories declined by 7.21 million barrels last week to the lowest level since early January, according to the Energy Information Administration. The market is digesting...
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Oil Climbs as U.S. Supplies Shrink to Lowest Since Start of Year

Oil surged to an eight-week high after the government said U.S. stockpiles shrank to levels last seen at the start of the year. Futures rose 1.8 percent in New York. Crude inventories declined by 7.21 million barrels last week to the lowest since Jan. 6, according to data from the Energy Information Administration Wednesday. Gasoline stockpiles fell for a sixth week to the lowest level since December, the data showed. “The primary driver behind the rally is that you’ve got more inventory d...
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Saudi Arabia Turns Off the U.S. Oil Tap

At last, Saudi Arabia seems to be doing what it takes to reduce the world's most visible oil glut: the one in the U.S. Unfortunately, its renewed vigor comes as OPEC's deal to reduce excess crude stockpiles starts to show signs of unraveling elsewhere, a subject that will be wrestled with by the group's oil ministers as they and other producer nations meet in St Petersburg on Monday. Saudi Slump Weekly U.S. crude oil imports from Saudi Arabia have fallen sharply since early June So...
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Amber Waves of Grain

Of the 14 commodities we track closely at U.S. Global Investors, wheat rose to take the top spot for the first half of 2017, returning more than 25 percent. The grain was followed closely by palladium—used primarily in the production of catalytic converters—which gained 24 percent. To view our ever-popular, interactive Periodic Table of Commodity Returns, click here. Between the start of the year and June 30, the Bloomberg Commodity Index contracted 4.03 percent, with energy weighi...
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His Gold Calls Have Been Quite Accurate; Now He’s Calling The Bottom

(Kitco News) - It seems the best way for investors to make money in the gold market lately is by being on the bearish side, but according to one analyst with a strong track-record, this trend could change. “Gold dropped 5 weeks in a row after my May 29th bearish call. All indicators tell me that a trend reversal is imminent,” noted Lejun James Shao, founder of www.myIRAs.net, in a Seeking Alpha post Wednesday. So far this year, Shao’s gold calls have been “quite accurate,” as he put it. ...
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The Federal Reserve is divided over its longer-term path

While almost all members of the Federal Reserve voted to raise interest rates in June, the central bank appears to be divided over its longer-term plans as data continue to show that the economy is not vigorously responding to its rate increases, released minutes from the Fed’s closed-door June meeting reveal. Even among Fed officials who supported increasing the benchmark interest rate in June, several “indicated they were less comfortable” with the Fed’s longer-term plan for raising rat...
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Some Fed officials want to start reducing assets ‘within a couple of months,’ minutes show

Several Federal Reserve officials wanted to start reducing the trillions of dollars of assets held by the central bank "within a couple of months" to accelerate the return to a more normal monetary policy after years of battling the Great Recession, according to an account released Wednesday of their most recent meeting. But other members of the policymaking Federal Open Market Committee advocated for waiting until later this year to start slowly scaling back the Fed's $4.5-trillion balance s...
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Trump trouble and euro surge extend gold’s gains

Gold extended its biggest weekly gain in five weeks as the dollar fell against the euro, while U.S. political turmoil fueled demand for bullion as a safe haven and reduced expectations of rapid U.S. interest rate rises. Spot gold rose 0.51 percent at $1,261.48, while U.S. gold futures for June delivery were up $7.80 to settle at $1,261.40 an ounce. The metal advanced by 2.2 percent last week as the furor over President Donald Trump's alleged links to Russia and his firing of former FBI ch...
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Why being long the US dollar is ‘very very dangerous’ right now

Why being long the US dollar is 'very very dangerous' right now More The U.S. dollar (STOXX: .DXY) finished the week just barely positive, and some strategists see the greenback heading lower as political uncertainty mounts. Federal Reserve Chair Janet Yellen's fairly hawkish remarks in a press conference Wednesday failed to boost the dollar, which the next day saw its largest one-day drop in over two weeks. In her two-day semi-annual testimony on monetary policy before the House...
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