Inflation To Run Higher Than The Standard 2%

GOLD

Federal Reserve Chairman Powell announced a major policy shift today, saying that the Fed is willing to allow inflation to run hotter than normal in order to support the labor market and broader economy. This means the central bank will be more inclined to allow inflation to run higher than the standard 2% target before hiking interest rates. In addition to the inflation change, the Fed shifted its approach to employment in a way that will focus on those at the lower end of the income spectrum.

Economists and financial market analysts have different interpretations of the effects these new policy changes will have on the economy. Therefore, the Gold price initially reached $1,980 then back down to $1,907 per ounce. I’ll go into more detail in the next Weekly Market Report. At 11am PT today, Gold is trading at $1,930 per ounce, down $17 on active volume.

SILVER

Silver briefly broke above the $28 level, when Gold was at the highs, reaching $28.02 per ounce. As Gold sold off, Silver reached a low of $26.46 per ounce, then rallied back above $27.

It appears that the U.S. and Canadian Mints have caught up with the backlog and are now giving distributors the ability to order a full allotment. Therefore, premiums on Silver Eagles and Maple Leafs are lower. At 11am PT today, Silver is down $0.35 per ounce, trading at $26.97 on active volume.