As markets prepare for Jerome Powell’s Jackson Hole address, the precious metals sector is rallying.
Gold and silver rallied Tuesday as the U.S. dollar index fell from 20-year highs and bargain hunters returned to the market after last week’s selloff.
As of the time this article was written, gold futures for December were trading at $1,764, representing an increase of 0.90 percent on the day.
Futures contracts for silver in September were trading at $19.10 per ounce, representing a rise of 0.94 percent on the day.
Powell’s lecture at the Jackson Hole conference on Friday is titled “Economic Outlook,” and precious metals and markets are likely to respond strongly.
On the other hand, “Reassessing Constraints on the Economy and Policy” will be the topic that will serve as the main emphasis of the symposium.
“As the name suggests, the primary focus of this article is on the importance of analyzing the supply side of the economy.
It may be possible to achieve reduced inflation with just a little decrease in consumer spending if there is less pressure placed on supply networks throughout the world.
We believe that this is one of the primary factors that will prevent a recession from occurring within the next few quarters.
The Fed wants a similar conclusion, and they may argue for it next week. US-focused senior economist Andrew Hunter says
The key factors influencing the price of gold are the robustness of the United States dollar and the yield on United States Treasury bonds.
When they are lower, gold prices are higher, but when they are higher, they are lower and gold prices are lower.