IKN

Win us with honest trifles

FOMC and the price of gold

With nothing important happening in the market until the Fed speaks, here’s a quick reminder of how this afternoon works:

  • If Jay Powell is viewed as too hawkish it means inflation is the big problem. That signals rate rises sooner rather than later, which makes the US Dollar stronger and is bad for gold.
  • If Jay Powell is viewed as too dovish it means Omicron has taken over as the number one concern. That’s bad news for the world’s biggest economy and a strong deflationary signal, which is bad for gold.
  • If Jay Powell is neither overly dovish or hawkish, gold has a chance of remaining unchanged.

Gotta love macroeconomics.

4 Comments

    More like you gotta love pm.

    Reply

    The FED [government] will continue with the charade of tapering and raising interest rates.The real game is financial repressing with much lower real rates and much higher inflation.The US is 85t in debt a 1% increase the debt 850B.Inflate the debt away with much higher GDP. How?My thoughts are a much much higher gold price something like the Trillion dollar Plt. coin.Sixty thousand dollar gold [US has 8000 tons] The new reset is here.INFLATE AWAY.

    Reply

      John, thank you for trying to bring some serious commentary to this blog, if only its owner were as mature.

      Merry Christmas to you, sir.

      Reply

    Thanks Mark ! A Merry Christmas to you and your family.

    Reply

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