Fed Minutes Reveal Concerns About Low Inflation

Fed Minutes Reveal Concerns About Low Inflation

Fed Minutes Reveal Concerns About Low InflationLos Angeles CA, August 17 (Tangible Investments) — by James O’Dell — Precious metals prices were mixed in early trading on Thursday after Fed minutes reveal concerns about low inflation. Gold is up 0.22 percent to $1,285.60 an ounce after soaring $11.70 on Wednesday to close at $1,282.80 an ounce.

Silver is down 0.03 percent to $17.10 an ounce after gaining $0.49 on Wednesday to close at $17.11 an ounce. The Gold/Silver ratio fell to 74.97 as Silver outperformed Gold. Platinum is down 0.20 percent to $974.00 an ounce. Palladium is up 1.21 percent to $917.00 an ounce a new 16-year high.

Gold’s rally was extended for a second day in early trading Thursday after minutes from the Fed’s July policy meeting revealed debate among policymakers over the recent lagging inflation.

“Some participants expressed concern about the recent decline in inflation, which had occurred even as resource utilization had tightened, and noted their increased uncertainty about the outlook for inflation,” said the minutes.

The dovish Fed minutes from the July meeting should put further rate-hikes this year in doubt. When coupled with the uncertainty surrounding President Trump’s ability to get his agenda through Congress, Gold continues to be supported.

“From a technical standpoint, the yellow metal is bullish on the daily timeframe as there have been consistently higher highs and higher lows. The breakout above $1283 should encourage a further appreciation towards $1300,” wrote FXTM research analyst Lukman Otunuga.

ECB Also Concerned With Low Inflation

Meanwhile, the European Central Bank (ECB) just released their latest minutes and like the Fed, showed concern for low inflation. The euro sold-off after the release of the minutes while the Gold price rose.

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