The gold market delights investors with an ounce of gold rising above $1,800. As the US continues to recover from the COVID-19 pandemic, the minutes of the US Fed’s June monetary policy meeting reflected some optimistic tones from the committee. So, how has gold been affected? Here are the details…
What was included in the minutes of the FED meeting?
The Fed’s meeting minutes included the following statements: “Participants observed a historically rapid expansion of activity led by strong gains in consumer spending. In the minutes, the majority of respondents revised their estimates of real GDP growth this year compared to their March projections, citing stronger consumer demand and improvements in vaccination rates as the main reasons for these upgrades. ”
The minutes also stated that due to the pace of the recovery, some committee members expect the Fed to begin tightening its monetary policy and reduce its bond-buying programs earlier than expected. “Various participants stated that in light of the incoming data, they think the pace of asset purchases will occur faster than they expected at previous meetings,” the statement said.
How were the yellow gold prices affected?
The gold market did not react much to the data. August gold futures were last up 0.70% on the day at $1,806.50. It stayed above the $1,800 level during the day. While there was some support among central bankers for tightening interest rates, the minutes did not provide a strong decisive mood, as many committee members also noted that risks to many committee members remain.
The minutes pointed out that the two risks to the US are supply chain problems and growing labor shortages. “Several respondents expressed concern that if high inflation data continued, long-term inflation expectations could rise to inappropriate levels,” the minutes said.
CIBC senior principal Katherine Judge said the minutes show how divisive the US central bank is when it comes to monetary policy. However, he added that he expects a consensus to form as the recovery progresses. For more gold news Cryptocoin. com “Professional Analisdollarser: Gold Will Be Traded At These Levels!” You can check the article.