You read yesterday that gold prices have surpassed $1 million per 400-ounce bar. Now, gold investors may be waiting to see what the Federal Reserve discussed in its last meeting and for the tone of an upcoming speech from Fed Chairman Jerome Powell. They’re looking for any possible clues to the Fed’s actions at its meeting in September. At Reuters, Sherin Elizabeth Varghese report, writing:
Gold prices eased on Wednesday, a day after hitting record highs, as investors awaited U.S. Federal Reserve meeting minutes and Chair Jerome Powell’s speech for clues to the central bank’s potential rate-cutting path.
Spot gold was down 0.1% at $2,510.15 per ounce as of 1126 GMT. U.S. gold futures had lost 0.1% to $2,548.50.
The dollar slipping to its lowest this year and lower Treasury yields could not hold gold at its zenith. Prices fell from an all-time peak of $2,531.60 hit on Tuesday but held strongly above the $2,500 per ounce level.
“Right now, the main factor for the relative calm in the markets is the wait-and-see stance from many traders, ahead of the Jackson Hole symposium,” said Ricardo Evangelista, senior analyst at ActivTrades.
“Jerome Powell is expected to speak on Friday and many hope that his speech will be the launchpad for the Fed’s rate cutting cycle.” Evangelista said, adding that the Fed is likely to continue rate cuts into 2025 and expects gold prices to rise toward $3,000.
Investors are also keeping a close eye on the minutes of the Fed’s July policy meeting due at 1800 GMT.
Traders have fully priced in a rate cut at the Fed’s September meeting, with a 70% chance of a 25 basis points cut, according to the CME FedWatch tool, opens new tab.
Action Line: Every rise to the price of gold is a condemnation of Federal Reserve and federal government policies that have abandoned the strength of the dollar. Since the Fed was created in 1913, the dollar has lost nearly 97% of its value. America can save the dollar with a return to the gold standard. If you want to talk about owning gold in your portfolio, click here to email me. In the meantime, please subscribe to my free monthly Survive & Thrive letter.
