Gold prices are again hitting new all time highs on Monday morning. The focal point of U.S. economic news this week is the Federal Reserve’s Open Market Committee (FOMC) meeting, commencing Tuesday morning and concluding Wednesday afternoon with an official statement and press briefing by Fed Chairman Jerome Powell. Recent shifts in market sentiment now lean slightly towards anticipating a 0.5% interest rate reduction, a change from earlier expectations which favored a more modest 0.25% cut. The price of gold is trading at $2587.50, up $9.80. The price of silver is trading at $29.33, up 65 cents.

New Jersey Governor Phil Murphy has signed Senate Bill 721 into law, exempting gold and silver bullion from state sales and use taxes. The legislation, which received bipartisan support, defines investment metal bullion as precious metals that have undergone smelting or refining, and investment coins as numismatic coins with a fair market value under $1,000. The law will take effect on January 1, 2025, making New Jersey the 45th state to eliminate sales taxes on gold and silver bullion.

This new law is seen as a step towards treating gold and silver as money rather than commodities, potentially undermining the Federal Reserve’s monopoly on currency. By removing tax barriers, it opens the door for people to use precious metals in everyday transactions. Supporters argue that this move not only relieves tax burdens on investors but also aligns with the constitutional provision that states should only use gold and silver as legal tender.