Federal Reserve Announcement Delays Gold & Silver Rally

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	Powell warns of some pain ahead As the Fed fights to bring down inflation
	Federal Reserve Chairman Jerome Powell delivered a stern commitment Friday to halting inflation, warning that he expects the central bank to continue raising interest rates in a way that will cause . . . . Jeff Cox
	Catalyst for $3,000/Ounce Gold Price: Central Banks Buying Gold
	On the other hand, you’ll rarely hear from the mainstream media about central banks loading up on gold. It’s astonishing what central banks have been doing lately. In fact, three of the . . . . Moe Zulfiqar
	Gold consumption soars during Chinese festival
	Compared to other markets, China's gold jewelry market shows a higher price transparency, and young Chinese consumers have shown . . . . China Daily
	Central banks add 270 tons of gold reserves so far in 2022
	Poland’s central bank has been one of the biggest buyers in recent years, along with . . . . Egypt Independent
	U.S. Dollar Moves To New Highs Amid Flight To Safety
	The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies . . . . Vladimir Zernov

Last week, from Monday to Thursday, most financial markets including precious metals traded in a narrow range. Many domestic and foreign analysts were waiting for direction from the U.S. Federal Reserve and on Friday got that clarity. Chairman Jerome Powell on Friday pledged that the central bank will “use our tools forcefully” to attack inflation that is still running near its highest level in more than 40 years. Powell added that higher interest rates likely will persist “for some time. The historical record cautions strongly against prematurely loosening policy.”

Chairman Powell gave a stern commitment to halting inflation, warning that he expects the central bank to continue raising interest rates in a way that will cause “some pain” to the U.S. economy. That news dramatically affected many financial markets lower. The Dow-Jones Stock average dropped over 1,000 points (over 3%), and Bitcoin dropped $1,500, under $20,000, a 7% decline.

Gold traded in a narrow range from $1,736 to $1,757 per ounce last week. When Chairman Powell’s information was released, Gold initially dropped $25, then found a sizeable amount of bargain buyers. As many other financial investments products continued to drop during Friday trading, Gold showed excellent demand even in the face of a strong U.S. Dollar Index. Gold showed good support above the $1,735 level. I’m concerned that by the time all of Chairman Powell’s statements get absorbed by the world’s financial markets, we could see Gold test the key $1,700 support level for the last time. Gold closed at $1,736, down $19 (1.08%) for the day.

Today: Last night, as Asian and European financial markets reacted to our recent Federal Reserve tightening policies, the price of Gold dipped to test the $1,720 per ounce level. During the same time, the U.S. Dollar Index hit a 20-year high of 109.48. In late trading in Europe and early trading in the U.S., the dollar sold off and Gold started to rally $20.

Last week, Silver declined at a faster pace than Gold when the inflationary statements from Chairman Powell were released. Silver initially dropped $0.46 per ounce, reaching a low of $18.68 before finding excellent demand. Silver closed at $18.75 on Friday, down $0.32 for the week. Silver dropping below the key $19 support level isn’t a good sign for the short-term direction of the Silver price. The Silver-to-Gold ratio closed at 93.34-to-1 in the past week.

Today: Silver followed Gold lower in early trading, reaching a low of $18.37 per ounce. As we rounded out of European trading, buyers saw precious metals as the best inflation hedge and the price started to rally.

We just found out late last week that the U.S. Mint's expected release of 2022 1oz Palladium Eagles Reverse Proof Coin has been delayed. We were originally expecting these coins to be sold in Early September, but we have not been told by the Mint when the new sale date is. They are just marking the coin with a release date as “To Be Determined (TBD)”.

Once we have more information on the availability of the coin and/or the reason of the delay, we will keep you updated. For this reason, we will be getting back to anyone who’s requested a pre-order once we have a new release date. If you are looking to Pre-Order a coin in PCGS or NGC Proof 70 in First Strike, Early Release, or First Day of issue, please email [email protected] with your request. No deposit is required to hold the request and we will confirm pricing once that information is provided to us by the mint.