Coins & bullion since 1973
___________________________________________________________

1-800-869-5115

We educate first-time investors.
Low-key, professional guidance for safe haven investors.

USAGOLD Coins
USAGOLD Menu BAR



Daily Gold Market Report
 JsCharts
 
gold prices

Live London Gold News Wire
15 to 30 minutes old
www.usagold.com --LIVE NEWS--
Why gold will continue to outperform equities00:08
TrustNet - Unit Trust & OEIC News - Research
2 to 4 hours old
www.usagold.com --LIVE NEWS--
A Bit More Downside Potential in Gold Stocks22:12
The Market Oracle - The Market Oracle
4 to 6 hours old
www.usagold.com --LIVE NEWS--
Gold Futures Contracts To Trade Rangebound Next Week20:21
Bernama - Malaysian National News Agency - Markets
6 to 8 hours old
www.usagold.com --LIVE NEWS--
Gold Prices Heavy on Yellen- Outlook Hinges on NFP18:08
Daily FX
Gold up18:00
The News International - Business
Gold shares lose lustre17:01
The Sydney Morning Herald - Business
Gold shares lose lustre17:00
The Age - Business
The Gold Price Correction Is An Opportunity16:59
Gold-Eagle
Gold shares lose lustre16:58
WA Today - Markets
Gold shares lose lustre16:57
Australian Financial Review - Luxury
A Bit More Downside Potential in Gold Stocks16:40
GoldSeek.com
Gold up on technical trading despite Yellen comments16:37
Xinhua Online - Business
Yesterday
www.usagold.com --LIVE NEWS--
Ely Gold Increases Size of Previously Announced Private Placement to $1,400,00016:19
PR Newswire (Press Release) - Financial Services
Gold mining stocks experience volatile day15:38
FT.com - US Markets
Gold-winning women's gymnastics team give standing ovation with cast of 'Hamilton'14:36
Fox News Latino - Money
Gold Junior Stocks Q2 2016 Fundamentals14:18
The Market Oracle - The Market Oracle
Freeport-McMoran Copper & Gold (FCX) Shares Enter Oversold Territory14:09
Forbes
$1.4 Billion Gold Price Take-Down14:08
Gold-Eagle
Gold under pressure ahead of Fed chair speech13:59
Business News Americas - Metals
CFTC: Speculators More Bullish on Stocks, Gold, Oil, Japanese Yen, CAD13:58
Investing.com - Forex
COT Gold, Silver and US Dollar Index Report - August 26, 201613:49
GoldSeek.com
After A Huge Year Where Does Barrick Gold Go From Here?13:49
Seeking Alpha - All Articles
Is there any gold bullion stored at the US Mint in Denver?13:46
Zero Hedge
Gold ETFs Lose Direction After Yellen’s Speech13:37
Nasdaq - Global Markets
Barrick Signs on to Venezuela Mining Push as Oil Pummels Economy13:29
Bloomberg - Industries
Buy Gold’s August Dip? Gold’s Monthly Sweet Spot In September13:28
The Market Oracle - The Market Oracle
Gold Juniors' Q2'16 Fundamentals13:24
Seeking Alpha - Macro View
Gold ETFs Lose Direction After Yellen’s Speech13:19
ETF Trends
The Impact of Brexit on the U.S. Economy and Gold Market13:18
The Market Oracle - The Market Oracle
Gold Futures Gain, But Finish Lower For The Week13:15
Fox News - Markets
Gold Prices Swing Following Yellen's Speech12:47
Nasdaq - Global Markets
Can Gold Really Benefit From The 'Mr. Robot' Effect?12:27
Kitco - News Bites
Mexico's top gold miners see output slip12:23
Business News Americas - Mining
Gold Erases Gains as Fed Speakers Spur Volatility12:18
WBP Online - Commodities
Higher gold price will add 10m annual ounces by 202012:17
Mining.com
Gold Flat After Yellen Hawkish Remarks12:14
London South East
Gold futures gain, but finish lower for the week12:13
MarketWatch
More Gold Bears on Wall St. Post-Yellen; Main St. Still Bullish11:57
Kitco - News Bites
Now That Yellen Has Spoken, Gold Market Turns Focus To U.S. Payrolls11:57
Kitco - News Bites
August Gold Report11:48
Investing.com - Commodities
What Country Has the Most Gold Reserves Now?11:36
Money Morning
Kikuyu grass: green gold revered abroad, underrated at home11:35
Daily Nation - Business
Gold Advances as Fed’s Yellen Sees Rate Rise ‘Over Time’11:33
Bloomberg - Markets
Gold Price Correction Tactics11:26
Gold-Eagle
James Grant: Invest in Gold Amid 'Monetary Disorder'11:16
NewsMax - Street Talk
Comex Gold Pares Earlier Gains In Volatile Session10:56
Kitco - News Bites
Gold Coast goes from thongs to haute couture stilettos10:52
Australian Financial Review - Leadership
Going for 'the Gold': What Entrepreneurs Can Learn From Athletes10:51
Entrepreneur Magazine
Brexit, The U.S. Economy And Gold10:48
Investing.com - Commodities
Gold Juniors’ Q2’16 Fundamentals10:46
Gold-Eagle

Gold Turns Choppy As Yellen Confuses

by Peter A. Grant

August 25, AM
(from USAGOLD.com) --

Gold is trading in a choppy manner as markets in general struggle to decipher Janet Yellen's message from Jackson Hole. The yellow metal dropped lower initially, rose to set new highs for the day and then slipped back to near unchanged on the day, resulting in an intraday range in excess of $20.

Gold reacted initially to Yellen's statement in the fifth paragraph of her speach, that she believes "the case for an increase in the federal funds rate has strengthened in recent months." The market seemed to disregard the very next qualifying sentance: "Of course, our decisions always depend on the degree to which incoming data continues to confirm the Committee's outlook."

So, we're getting closer to another rate hike, but we still need to see confirmation in the data. This is the same basic message the Fed has been delivering for the past 5-years.

When talking about policy during the financial crisis in 2008, Yellen notes that "a variety of policy benchmarks would, at least in hindsight, have called for pushing the federal funds rate well below zero during the economic downturn." The footnoted formula "would have prescribed lowering the federal funds rate to minus 9 percent at the depths of the recession."
8. R(t) = R* + p(t) + 0.5[p(t)-p*]-2.0[U(t)-U*], where R is the federal funds rate, R* is the longer-run normal value of the federal funds rate adjusted for inflation, p is the four-quarter moving average of core PCE inflation, p* is the FOMC's target for inflation (2 percent), U is the unemployment rate, and U* is the longer-run normal rate of unemployment. Based on the medians of FOMC participants' latest longer-run projections, R* is approximately 1 percent and U* is about 4.8 percent. Accordingly, with the unemployment rate climbing to 10 percent and core PCE inflation falling to 1 percent in 2009, this rule would have prescribed lowering the federal funds rate to minus 9 percent at the depths of the recession.

San Fransisco Fed President John Williams talked about R* in a research piece last week:
"...new realities pose significant challenges for the conduct of monetary policy. Foremost is the significant decline in the natural rate of interest, or r* (r-star), over the past quarter-century to historically low levels."

Williams went on to say that "a variety of economic factors have pushed natural interest rates very low and they appear poised to stay that way." With that in mind, the same formula cited in Yellen's speech would prescribe that the Fed funds rate be set at 0.54% today, just above the high end of the current 0.25-0.50% target range. I don't think the Fed is prepared to start micro-adjusting interest rates based on any formula, so the Fed funds rate is pretty much where it needs to be.

Nonetheless, Yellen really didn't say anything that might dispel the notion that the Fed is on the cusp of anther rate hike. But even another 25 bps hike is largely meaningless in the grand scheme of things. Keep in mind that economic growth remains anemic, inflation is below target, wages and productivity have stagnated and the national debt continues its march to $20 trillion.

Opinions expressed in commentary on the USAGOLD.com website do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell any precious metals product, nor should they be viewed in any way as investment advice or advice to buy, sell or hold. USAGOLD, Inc. recommends the purchase of physical precious metals for asset preservation purposes, not speculation. Utilization of these opinions for speculative purposes is neither suggested nor advised. Commentary is strictly for educational purposes, and as such USAGOLD does not warrant or guarantee the accuracy, timeliness or completeness of the information found here.

 

Follow USAGOLD economist Pete Grant on
twitter

b
b b b

Great prices. Quick delivery. All the time.
Contemporary gold and silver bullion coins
Bullion-related historic gold coins
U.S. $20 gold pieces

Order Desk
1-800-869-5115
Extension #100
6am to 6pm USMT weekdays.

Prefer e-mail to get started?
orderdesk@usagold.com

"The possession of gold has ruined fewer men than the lack of it." – Thomas Bailey Aldrich

RELATED LINKS

Ratings Matter!
Few can match our golden credentials

The BBB began its Gold Star Certificate program in 2003 and USAGOLD has been a recipient of the prestigious award every year it has been issued – fourteen straight years without a complaint. The firm has been a member of the Bureau since 1986 and rated A+ every year since 1991, the year it began its accreditation program.

See our full BBB report

American Numismatic Association since 1975
Industry Council for Tangible Assets since 1985
This website in continuous operation since 1997

 

Saturday August 27
website support: sitemaster@usagold.com / general mail: admin@usagold.com
Site Map - Risk Disclosure - Privacy Policy - Shipping Policy - Terms of Use
© 1997-2015 USAGOLD All Rights Reserved
Mailing Address - P.O. Box 460009, Denver, CO USA 80246-0009
1-800-869-5115