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The Fed left its monetary policy unchanged. However, the lack of any action amid economic recovery is dovish – good news for gold.
On Wednesday (Apr. 28), the FOMC has published its newest statement on monetary policy. The statement wasn’t significantly altered. The main change is that the Fed has noticed the progress on vaccinations and strong policy support, and that, in consequence, the economic outlook has improved.
Previously, the US central bank said that indicators of economic activity and employment “have turned up recently, although the sectors most adversely affected by the pandemic remain weak”, while now these indicators “have strengthened”, while “the sectors most adversely affected by the pandemic remain weak but have shown improvement”. So,
The Fed left its monetary policy unchanged. However, the lack of any action amid economic recovery is dovish – good news for gold. On Wednesday (Apr. 28), the FOMC has published its newest statement on monetary policy . The statement wasn’t significantly altered. The main change is that the Fed has noticed the progress on vaccinations and strong policy support, and that, in consequence, the economic outlook has improved. Previously, the US central bank said that indicators of economic activity and employment “have turned up recently, although the sectors most adversely affected by the pandemic remain weak”, while now these indicators “have strengthened”, while “the sectors most adversely affected by the pandemic remain weak but have shown improvement”. So, the Fed acknowledged the fact that the economy has significantly recovered .
It’s tempting to say that miners are showing strength compared to gold based on the GDX’s performance, but other mining proxies say otherwise. Just because a house is standing doesn t mean its foundations are solid, and that s exactly the case with the miners. There’s one extra thing that I would like to point out about mining stocks’ technical picture today (Apr. 8), and that’s their performance relative to gold. Some investors might say that mining stocks are showing strength compared to gold as the GDX to gold ratio broke above its declining resistance line. However, I don’t think it’s fair to say so. I think that seeing a breakout in the