Gold pumped by Fed chairman decision

LATE REPORT

Gold was up today in Fed-related trading.  It finished the day at $1274.49 up $3.63 from yesterday’s closing number.  It is up another $6 in overnight trading.  Silver had an even better day, up 43¢ and back over the $17 mark at $17.10.  It is up another 6¢ in the overnight market.  Pushing the market was a Wall Street Journal report that the president had appointed Jerome Powell chairman of the Federal Reserve. Powell is generally considered dovish on interest rates.  Adding to the gold-positive tone was a report from the China Gold Association that bar demand there was up 15.49% through the first three quarters of the year. Gold is up 6% in yuan terms so far this year.

Quote of the Day
“We think the final break with precious metal currency systems from the early 1970s (after centuries of adhering to such regimes) and to a fiat currency world has encouraged budget deficits, rising debts, huge credit creation, ultra loose monetary policy, global build-up of imbalances, financial deregulation and more unstable markets. The various breaks with gold based currencies over the last century or so has correlated well with our financial shocks/crises indicator. It shows that you are more likely to see crises/shocks when we break from hard currency systems. Some of the devaluation to Gold has been mindboggling over the last 100 years.” – Jim Reid, Deutsche Bank


If our Quote of the Day resonates, you will find the lead article for our November newsletter of interest. Please scroll below to “Government Finances and Gold–A cautionary tale told in four straightforward charts” and a link to signing-up for the rest of the newsletter (which we believe you will find equally interesting).
 

 

Share
This entry was posted in all posts. Bookmark the permalink.

Comments are closed.