ANZ on the FOMC and why gold dropped hard

A snippet from ANZ on gold and the Federal Open Market Committee overnight

• Fed minutes, which seemed to suggest the central bank was backing off from providing further guidance on interest rates
• The reluctance to use yield-curve control measures saw treasury yields rise and the USD strengthen

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Of course it wasn't only gold that fell on the minutes. FX gave back ground against the USD and stocks dropped also. The moves were quite large relative to what were fairly mild nuances from the FOMC, tends to happen when levels get stretched though.

FOMC recap is here ICYMI

• The US dollar has further extended gains after the minutes. Some are pointing to the comments on yield-curve control. That's exactly what policymakers have been saying so that shouldn't come as a surprise but perhaps we're finally getting some kicking and screaming from the market.