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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPrecious Metals Tumble Against Strong Dollar
(BLOOMBERG) Spot gold fell 0.7% to $1,732.47 an ounce in London. Silver fell 2.3%, while platinum and palladium also retreated. The Bloomberg Dollar Spot Index advanced a third day.
Federal Reserve Chairman Jerome Powell reiterated in a Wall Street Journal editorial that the central bank will continue to provide aid to the economy for as long as it takes as the recovery is far from complete. Richmond Fed President Thomas Barkin said in a Bloomberg TV interview Sunday that there is no sign yet of unwanted inflation pressures.
The opportunity cost of being in a reflationary environment seems to be holding gold back, said Chris Weston, head of research at Pepperstone Group Ltd. The appeal of gold as a portfolio hedge is not there either, with the U.S. dollar a seemingly better play.
Meanwhile, Powell and Treasury Secretary Janet Yellen are expected to make their first joint appearance before the U.S. House Financial Services committee to testify on Fed and Treasury pandemic policies Tuesday.
SoCalDavidS
(9,998 posts)Explain how Gold is actually going down, while $$$$$$$$$$$$$ are being pumped into the economy like no other time in history.
Stronger Dollar my butt.
roamer65
(36,745 posts)Money has to be moving to generate inflation and its not moving.
Money does not move in dying empires.
What we can still have is a debt and possibly a currency crisis. When markets say enough on US Treasury paper, interest rates will go up, and up and up.
SoCalDavidS
(9,998 posts)Once the worldwide economy starts to open up, people will be spending money again, I assume.
roamer65
(36,745 posts)More than likely there is permanent damage from this recession.
Heres where progressive tax policy can help.
Immediate increase in corporate taxes and a hike in the top marginal income tax rate to 50 percent.
Its called redistribution of wealth. FDR knew his shit.
the 'runaway inflation' chicken-littles are full of shit.