Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details
Will The U.S. Fed Pivot, And Do Gold And Silver Care?
www.investing.com/analysis/will-the-us-fed-pivot-and-do-gold-and-silver-care-200628101
Will The U.S. Fed Pivot, And Do Gold And Silver Care?
By David I. Kranzler | Aug 05, 2022 01:21AM ET “[T]he Committee decided to raise the target range for the federal funds rate to 2-1/4 to 2-1/2 percent and anticipates that ongoing increases in the target range will be appropriate. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities.” – July FOMC Policy Statement
The FOMC voted unanimously in favor of the Policy Statement and related actions released last week. While the Fed indicated that “ongoing increases” will be data dependent, the key data points consistent with the alleged Fed mandate are CPI inflation and the unemployment rate. Both are phony numbers but if the Fed thinks it can attack inflation by attacking consumer demand, it will need to continue hiking rates for now and it can point to a sub-4% unemployment rate, as fictitious as that number may be, to justify continued rate hikes.
That said, the precious metals sector at this point will not care whether or not the Fed pivots. Real interest rates are still extremely negative – meaning monetary policy continues to devalue the dollar – and there are many indications that the precious metals sector may be forming a tradeable bottom.
Chris Marcus of Arcadia Economics and I discuss the implications of the Fed’s latest episode of “FOMC Kabuki Theatre” and why the current policy as well as possible pivot is bullish for gold, silver and mining stocks:
Related Articles
Oil’s Iran Cliffhanger: What To Know And What To Expect
By Barani Krishnan/Investing.com - Aug 17, 2022
29
EU attempting to revive Iran nuclear deal with market staying pessimistic Crude prices could rebound from oversold conditions but stay off 2022 highs Both Iran, US likely looking...
Oil Stumbles, Gold Edges Lower
By Ed Moya - Aug 17, 2022
After 18 months of negotiations, progress has been made in reviving the Iran nuclear deal. We’ve been here before and have seen talks fall apart. What is a little...
Natural Gas: Wobbling Exhaustive Candle Set To Trend More Bearish
By Satendra Singh - Aug 17, 2022
2
The recent movement of natural gas on the daily chart indicate the final attempt by the bulls to try to test the recent $9.665 on June 8, 2022, but found it difficult to breathe...
Will The U.S. Fed Pivot, And Do Gold And Silver Care?
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.