Gold Rises Ahead Of Powell Confirmation Hearing

Gold Rises Ahead Of Powell Confirmation Hearing

Gold Rises Ahead Of Powell Confirmation HearingLos Angeles CA, November 28 (Tangible Investments) by James O’ Dell Precious metals prices were mixed on Tuesday as Gold rises ahead of Powell Confirmation Hearing. Gold is up 0.11 percent to $1,295.40 an ounce after gaining $6.10 on Monday to close at $1,294.00 an ounce.

Silver is down 1.15 percent to $16.82 an ounce after adding $0.01 on Monday to close at $17.02. The Gold/Silver ratio rose to 76.03. Platinum is up 0.63 percent to $952.00 an ounce. Palladium is up 2.31 percent to $1,020.00 an ounce.

Gold edged higher in early trading on Tuesday, ahead of the confirmation hearing for U.S. Fed Chairman, Jerome Powell. In Powell’s prepared remarks he defends the current direction of the central bank suggesting a continuation of Janet Yellen’s monetary policy.

“We have Yellen and the hearing of Powell, so (traders) are a bit cautious,” says ABN Amro analyst Georgette Boele. “He will likely continue to hike interest rates at a modest pace,” she added.

Catalyst For Gold Could Come From Fed

Meanwhile, as equities continue to make new highs, Gold has needed a catalyst to break above its recent trading range. Bart Melek, head of commodity strategy with TD Securities says that catalyst may come from the Fed.

The yellow metal may get support from a low inflation narrative coming from the Fed, says Melek.  The yield curve remains firmly placed on a flattening trajectory, suggesting both carry and opportunity costs of holding precious metals remain low.

The robust buying of longer maturities, the unwinding of the Fed’s balance sheet and tepid inflation expectations have resulted in the two-year versus 10-year yield spread collapsing to just 59 bps [basis points], which is the lowest since 2007.

Melek concludes that: The uncertainty about the timing or potential delay of future rate hikes should lift Gold above $1,300/oz.

It’s important to protect your hard earned wealth during these times of economic and geopolitical uncertainty. At Tangible Investments, it doesn’t matter whether you’re new to precious metals or a seasoned veteran. You will always be dealing with top industry experts. Take a moment and browse our vast selection of valuable collectibles. Then, call Toll Free 1.888.655.9255 today.

Let the helpful staff at Tangible Investments assist you in your next purchase or sale. You may also wish to click here to check out our eBay store. Tangible Investments is the leading buyer of rare Gold and Silver coins, art, antiques, diamonds, sterling and flatware. We also loan against anything of value and offer more money at half the loan cost. Come in or call 1.888.655.9255 now for a free quote.

Leave a reply