To the gold crowd hoping to read the tea leaves after today’s Fed meeting, here’s a likely synopsis: with rates virtually at zero, focus will probably be on the direct lending plan to companies; whether there should be any optimism for Q2; and what’s the message for Congress, if any.
Since its mid-March emergency meeting, the central bank of the United States has almost matched the White House’s coronavirus stimulus efforts with over $2 trillion of its own for asset purchases, expanded lending facilities and swap lines with foreign central banks. And it promises to do even more. All the dollar debasement that follows will be great for anyone looking for $1,800-and-beyond gold.
AFTER POWELL, WATCH THE REOPENINGS
But the catalyst for $1,800-gold isn’t around the corner, or at least doesn’t seem to be. So, when you click Fed Chair Jay Powell off your screen later today, focus on what the yellow metal needs in order to stay in its present, below-$1,750 berth—and move incrementally upward, or even sideways.
Gold Weekly TTM
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