On Friday, investors will hear more on what Fed Chairman Jerome Powell thinks about the economy and monetary policy. Experts say implementing the easiest monetary policy in history was tough for the Fed, so getting out will be difficult as well. In other news, experts say German investors are loading up on gold. According to Bloomberg, Germany’s love of gold originated in the hyperinflation seen under the Weimar Republic a century ago, which saw consumers’ buying power collapse. Last month, the reopening of the economy helped German inflation jump to the highest in more than a decade.

 

CNBC/Jeff Cox
The pressure is on for Powell and the Federal Reserve to manage the exit from ultra-easy policies

For the Federal Reserve, implementing the easiest monetary policy in the institution’s history was tough enough. Getting out will be no treat, either.

That is what the central bank faces on its road ahead.

Investors on Friday will hear more on what Fed Chairman Jerome Powell thinks about the economy. They’re also expecting to get at least a few more clues on how he will guide the central bank’s exit from the measures it took to rescue the nation’s economy from the Covid-19 pandemic. He will deliver a speech in conjunction with the Fed’s annual Jackson Hole conference, which again will be held virtually this year.

First on the Fed’s docket is pulling back on the money printing – the $120 billion or so of bonds it buys each month to stimulate demand and drive down long-term interest rates.

After that, the road gets rougher.

You can read the full story, here.

 

Kitco News/Neils Christensen
Silver price supported by growing industrial demand – Metals Focus

The silver market has been attracting new attention as the precious metal underperforms in the marketplace. However, many analysts have said that the metal is significantly oversold and due to a bullish correction.

In a report published Wednesday, commodity analysts at Metals Focus said that they remain bullish on silver as the metal’s industrial demand continues to look bright. They added that industrial demand, which makes up about 50% of the silver market, will provide some critical support for prices.

The analysts noted that silver’s lackluster performance could be due to shifting expectations for weaker global growth as the world continues to deal with surging cases of the COVID-19 Pandemic. However, they added that they expect this to be a short-term driver for silver.

“In our view, however, we have retained our positive outlook for silver industrial demand, both this year and looking further ahead, even if the global economy does face several headwinds,” the analysts said.

Continue reading, here.

 

Bloomberg via Yahoo Finance/Eddie Spence
Inflation-Wary Germans Are Loading Up on Gold

Many gold investors might be fretting over the prospect of the Federal Reserve curbing monetary stimulus, but Germans are still loading up.

Demand for physical bullion in Germany, traditionally the biggest coin and bar buyer in Europe, was the highest since at least 2009 in the first half, World Gold Council data show. While purchases in other Western markets have also been strong, Germans, in particular, are pouring into the metal as a hedge against rising inflation — and dealers say business remains good.

“We have a long history of inflation fear in our DNA. Now the inflation risk is picking up,” said Raphael Scherer, a managing director at metals dealer Philoro Edelmetalle GmbH, whose gold sales are up 25% on what was already a strong 2020. “The outlook for precious metals is very positive.”

Read the full story, here.

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