It was a good week for the metals and miners, coming on the back of the latest comments from Jerome Powell. He admitted that economic growth still has a lot of catching up to do. He knew the first estimate of Q2 GDP (before it came out) missed by 2.0% (6.50% vs. the 8.50% estimate), providing the ideal environment for gold; inflation, very low nominal yields (even more negative real rates), and economic uncertainty, with the potential for the CV-19 Delta variant becoming widespread. It looks…
Positions as of Tuesday, July 27, 2021.
Gold portfolio allocations should soar too on the raging inflation unleashed by the Fed nearly doubling the money supply since March 2020’s stock panic. This is a great setup for a big gold-stock autumn rally.
I ordinarily do not spend time reading the FOMC policy statement after it’s released, saving that brain damage for CNBC. But I read the June release to assess for myself whether or not the Fed had tilted toward a more “hawkish” policy stance..
Gold's decisive move, but the price at the 200 day moving average. An important area.
