U.S. Fed and Bank of England: QE Still The Order Of The Day

Today’s AM fix was USD 1,275.50, EUR 960.61 and GBP 838.04 per ounce.  
Yesterday’s AM fix was USD 1,292.00, EUR 972.97 and GBP 840.38 per ounce.

Gold fell $17.80 or 1.37% yesterday and closed at $1,283.60/oz. Silver fell $0.16 or 0.82% and closed at $19.52. 

Gold continued losses into a third session after comments by a Dallas Fed official ramped up fears that the U.S. Fed could begin tapering soon. Today, the governor of the Bank of England unveiled a Fed-style forward guidance.

Yesterday, India’s largest spot commodity exchange was shut down as regulators investigate possible trading violations. This had no impact on global gold bullion trading prices. The lack of proper regulation is just one problem that the Mumbai exchange and many others must solve.

Richard Fisher, the Dallas Federal Reserve President was first out of the blocks on Tuesday and he was followed yesterday by Charles Evans, the Chicago Federal Reserve President, who reiterated Fisher’s sentiments by indicating that the better than expected economic and labour market data in the U.S means that the Fed might introduce tapering as early as September.

Evans, who is one of twelve Federal Reserve Presidents, believes that the economic indicators “are actually really better” and this signals a new, more firmer indication from the Fed that tapering is going to happen.

The 12 Federal Reserve Banks are 1st District: Boston, 2nd District: New York, 3rd District: Philadelphia, 4th District: Cleveland, 5th District: Richmond, 6th District: Atlanta, 7th District: Chicago, 8th District: St. Louis, 9th District: Minneapolis, 10th District: Kansas City, 11th District: Dallas, 12th District: San Francisco.

Observers of the Fed will be watching closely what the next Federal Reserve President will say. With two of the 12, who have opposing views on QE, already pitching tapering there is no reason to doubt that those that follow will not read from the same page. The ‘gentle’ introduction of tapering is being orchestrated alongside the selection procedure for the next chairman of the Federal Reserve, an appointment in itself that will affect the price of gold and all other commodities.


Support & Resistance Chart, 5 Year – (GoldCore)

In the UK, the new Bank of England governor, has announced that the central bank will not raise interest rates until UK unemployment hits 7 percent. The UK unemployment rate currently stands at 7.8%.

Since 2009, the Bank of England has pursued its own QE policies under the guidance of its Monetary Policy Committee. Carney has been bolstered by recent data that appears to show the UK economy is on the road to recovery. Manufacturing output rose 1.9% month-on-month in June, following declines in both May and April. What is important is that this growth came at more than twice the rate expected by analysts.

Carney told a packed press conference: "A renewed recovery is now underway in the United Kingdom and it appears to be broadening" and cautioned that the recovery is "weak" by historical standards. Then Carney added that he believes gross domestic product (GDP) in the U.K. will not hit its pre-crisis peak for another year. 

NEWS
Europe Stocks Drop asInvestors Watch BOE After Fed Talk – Bloomberg

Slump in recycled gold rebalancing surplus market:World Gold Council – The Economic Times

India Halts Spot-MetalsTrade – Wall Street Journal

COMMENTARY

Bank of England set to unveil ‘forward guidance’ – BBC News

Mark Carney Is Expected To Announce A Big Change To How England Does Monetary Policy – Business Insider

“Tinker Taper Soldier Spy” – King World News

Mark OByrne

Also on news-goldcore-com

Videos

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Are We In A Financial Bubble? Peter Grandich Interview

Blog posts

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

This is a Long Term Bullish Pattern for Gold – Gareth Soloway on GoldCore TV

“This is a long term bullish pattern for gold!” – Gareth Soloway Gold In this latest episode of GoldCore TV, Gareth Soloway joins Dave Russell to discuss what what the charts are suggesting for the stock markets, bond markets and #bitcoin. In addition to this he also takes a look at his gold price forecast 2021 and beyond.Gareth identifies the key levels that […]

READ MORE

The Inflation Tide is Turning!

In our post on January 28, 2021 “Gold, The Tried-and-True Inflation Hedge for What’s Coming!” we outlined four reasons that we expect higher inflation over the next several years. The brief bullet points are: Money Supplies have risen dramatically Commodity Prices are rising again Reduced Globalization as ‘Made at Home’ policies are proliferating Pent up […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Are We In A Financial Bubble? Peter Grandich Interview

Blog posts

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

This is a Long Term Bullish Pattern for Gold – Gareth Soloway on GoldCore TV

“This is a long term bullish pattern for gold!” – Gareth Soloway Gold In this latest episode of GoldCore TV, Gareth Soloway joins Dave Russell to discuss what what the charts are suggesting for the stock markets, bond markets and #bitcoin. In addition to this he also takes a look at his gold price forecast 2021 and beyond.Gareth identifies the key levels that […]

READ MORE

The Inflation Tide is Turning!

In our post on January 28, 2021 “Gold, The Tried-and-True Inflation Hedge for What’s Coming!” we outlined four reasons that we expect higher inflation over the next several years. The brief bullet points are: Money Supplies have risen dramatically Commodity Prices are rising again Reduced Globalization as ‘Made at Home’ policies are proliferating Pent up […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE