Many experts now expect Fed officials to announce that they’re sitting tight on tapering. They now expect the decision to come later in the year. Gold has seen double-digit gains as concerns around Evergrande continue to grow. But what does the latest upcoming Fed announcement mean for the yellow metal?

 

CNN Business/Julia Horowitz
Why everything changed for the Federal Reserve

Six weeks ago, the Federal Reserve was sending signals that it was time to start backing away from crisis-era support for the US economy.

“It’s not clear to me that we’re really doing anything useful here,” St. Louis Federal Reserve Bank President James Bullard said on Aug. 10 of the Fed’s $120 billion in monthly bond purchases.

Dallas Fed President Robert Kaplan agreed. “What I don’t want to do is keeping running at this speed for too long, and then we’re going to have to take more aggressive action down the road,” he told CNBC around the same time.

But the picture has changed since then, and when the Fed makes its latest policy announcement on Wednesday, it’s expected to reiterate that for now, at least, it’s sitting tight.

Read the full story, here.

 

Kitco News/Anna Golubova
Is gold price ready to hear what Fed’s Powell has to say?

Gold is now in a much better position to receive Federal Reserve Chair Jerome Powell’s announcement on Wednesday. But can it handle a more hawkish message from the central bank?

After dropping $50 last week, gold saw encouraging double-digit gains as Evergrande concerns rattled the markets early this week.

Aside from increased volatility in the global equity markets, the OECD raised its inflation outlook for almost all Group of Seven (G7) countries for the rest of this and next year.

“Near-term inflation risks are on the upside, particularly if pent-up demand by consumers is stronger than anticipated, or if supply shortages take a long time to overcome,” the OECD said in a report. “Accommodative monetary policy should be maintained, but clear guidance is needed about the horizon and extent to which any inflation overshooting will be tolerated.”

Read the full story, here.

 

CNBC
Sen. Rick Scott on China’s Evergrande and economic outlook

CNBC’s “Squawk Box” team discusses Chinese markets and economy, including Evergrande’s debt crunch, and how it may impact the global economy with Sen. Rick Scott (R-Fla.).

You can watch the full interview, here.

 

 

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