Analysts say the time for gold is coming. Uncertainty with Fed tapering puts the U.S. dollar in a weaker position, driving more people to the yellow metal. While experts say the market will continue to struggle in the near term, they also predict that gold prices will push to $5,500 an ounce in the long term.


Yahoo Finance/Aziz Kenjaev
Gold Analysis – It’s Time for Gold to Steal the Show

The data may suggest that the FED will restrain from their idea of increasing interest rates early next year, however, taper uncertainty puts the USD in a weaker position. The market is tired of the sea-saw imposed by the FED. And when this kind of sentiment fills the market, the edge goes to safe-haven assets, mainly Gold.

There are several factors that might weaken the US Dollar this week, one of them is the ongoing negative US trade balance. New US-China trade deal talks are anticipated to remain unchanged with either party willing to back down. US President Joe Biden also labeled the importance of talks with the US allies to present a more united front to Beijing.

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Kitco News/Neils Christensen
Gold price headed to $5,500 in the long term as central banks won’t be able to exit unorthodox monetary policies – Jefferies

The Federal Reserve’s potential plan to reduce its monthly bond purchase by the end of the year continues to weigh on the gold market as prices remain tethered to support around $1,750 an ounce. However, one investment firm continues to see gold prices pushing thousands of dollars higher in the long-term.

In a report published Tuesday, investment bank Jefferies Group said that gold and Bitcoin remain essential hedges as the threat of stagflation – an environment of low growth and higher inflation – continues to grow.

Although the market continues to struggle in the near-term, analysts at Jefferies said that their long-term forecast remains in place for gold prices to push to $5,500 an ounce.

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CNN Politics/Kaitlan Collins, Kate Sullivan and Maegan Vazquez, CNN
Biden says changing filibuster rules to raise debt ceiling is ‘a real possibility’

President Joe Biden on Tuesday said it was a “real possibility” that Senate Democrats would look to change the filibuster rules in order to overcome Republican opposition and raise the debt ceiling ahead of a fast-approaching deadline.

A change to the filibuster rules would allow Democrats to avoid a potentially catastrophic default less than two weeks away, but every Democratic senator would have to be on board to make the change.

Democrats have the ability to raise the debt ceiling on their own but would need to use a lengthy congressional process called reconciliation to do so. Using reconciliation to raise the debt ceiling could take two weeks — very close to the October 18 deadline laid out by Treasury Secretary Janet Yellen. Changing the filibuster rules would allow Democrats to move much quicker while still only using Democratic votes and Vice President Kamala Harris to pass the debt ceiling hike.

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