Gold Headlines

Gold drops as dollar rises on Fed's upbeat economic view (Reuters)

The dollar index rose to a more than one-week high against its rivals after the Fed signalled on Wednesday it expected the U.S. economic recovery from the coronavirus crisis to accelerate, with unemployment falling faster than the central bank’s forecast in June. Meanwhile, the Bank of Japan kept monetary policy steady and slightly upgraded its view on the economy, suggesting that no immediate expansion of stimulus was needed to combat the coronavirus pandemic. https://www.reuters.com…

BOJ Governor Kuroda's comments: The Fed’s new view is in line with ours

Private equity owners pile on leverage to pay themselves divis (ft)

Fed defends 'pedal to the metal' policy and is not fearful of asset bubbles ahead (Reuters)

The Fed launched unprecedented support when the coronavirus pandemic hit the United States earlier this year, slashing interest rates and unleashing asset purchases which has pushed bond yields to lows and sent equity prices to record highs. Still, Powell said the decade-long U.S. economic expansion, which ran prior to the pandemic hitting growth, had included both quantitative easing and low interest rates but was “notable for the lack of the emergence of some sort of a financial bubble.”…

Gold prices log a third straight gain, then extend gains after Fed policy statement (MarketWatch)

The FOMC announcement “giving off an even more dovish signal is going to help gold break out of this consolidation phase it has been in for the past several weeks,” Peter Spina, president and chief executive officer at GoldSeek.com, told MarketWatch. “It may take some weeks still with some price consolidation finishing up here, but I expect gold to break back above $2,000” in the fourth quarter and set fresh record highs as we close out the year. https://www.marketwatch.com/story/gold…

Fed expected to lift economic forecasts, extend vow to keep rates low

BREAKING: Fed holds rate steady and promises to stay there for years

Fading fiscal stimulus crimping U.S. consumer spending

Please check back for the FOMC announcement.

Dow jumps ahead of Fed announcement

Gold rises as investors bet on dovish U.S. Fed stance (Reuters)

"What we're probably seeing building in gold is expectation that the Fed is going to be more dovish than in the past, and the realization that we're seeing slightly more inflationary pressure than anticipated," said OANDA analyst Craig Erlam. While the Fed does not need to announce stimulus measures now, it will need to lay the groundwork for potential stimulus later, he added. https://www.reuters.com/article/idUSL4N2GD22V