$GLD and $SLV Prices as of July 15 2019 @moneymetals
8:12 AM
July 15, 2019 -- Gold, silver, and platinum prices moved higher last week.
Fed Chair Jerome Powell laid out the Fed’s likely plans to begin lowering the funds rate before month end. The planned move is creating some confusion for those who expected the central bank to respond differently to good economic data.
Heavily managed government data including the employment reports and Consumer Price Index (CPI) show headroom for the bank to be raising rates, not lowering. Now is when officials could be delivering on the promise to normalize rates, but they have abandoned that course.
There are clear takeaways for investors.
The first is that economic strength isn’t what is being represented.
The second is the Fed will not be able to withdraw stimulus and does not seem willing to tolerate a substantial slowdown.
What were once deemed “extraordinary measures” – ultra-low interest rates and massive bond purchases – will soon be the baseline. The new “extraordinary” may include things like negative interest rates and helicopter money.
As realization sets in on the markets, investors should expect weakness in the U.S. dollar. The greenback finished lower in currency markets last week and fared even more poorly versus gold.
Check out live precious metals prices here:
https://goo.gl/gy5XMA
Fed Chair Jerome Powell laid out the Fed’s likely plans to begin lowering the funds rate before month end. The planned move is creating some confusion for those who expected the central bank to respond differently to good economic data.
Heavily managed government data including the employment reports and Consumer Price Index (CPI) show headroom for the bank to be raising rates, not lowering. Now is when officials could be delivering on the promise to normalize rates, but they have abandoned that course.
There are clear takeaways for investors.
The first is that economic strength isn’t what is being represented.
The second is the Fed will not be able to withdraw stimulus and does not seem willing to tolerate a substantial slowdown.
What were once deemed “extraordinary measures” – ultra-low interest rates and massive bond purchases – will soon be the baseline. The new “extraordinary” may include things like negative interest rates and helicopter money.
As realization sets in on the markets, investors should expect weakness in the U.S. dollar. The greenback finished lower in currency markets last week and fared even more poorly versus gold.
Check out live precious metals prices here:
https://goo.gl/gy5XMA
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