Gold & Silver Gain Ahead of Fed Gathering
APMEX
8/23/2021 11:43:29 AM
Gold & Silver Rise Ahead of Fed Gathering
The week began as the dollar dipped from highs not seen since November of 2020. The dollar rise came on the heels of FOMC meeting notes last week, which indicated Fed tapering may occur before the end of the year. Treasury yields are modestly higher as well, with both the 10-year and 30-year Treasury notes up by one basis point this morning.
Gold and silver both rose with the dollar decline. Gold jumped 1.5% and is currently hovering near $1,805 an ounce. Silver gained 2.4% and is currently near the $23.50 mark. Gold and silver are finding support from buyers concerned about the economic effects of Delta variant cases, and investors who favor less-risky assets amid some grim geo-political developments.
As the situation in Afghanistan develops, many are concerned as to how stranded Americans will be brought home safely. The White House estimates that there are “several thousand” American citizens stranded. Those not in Kabul are being encouraged not to travel to the airport, as their safety cannot be guaranteed. U.S. officials fear that the Taliban my not allow safe passage for those stranded, and that militants from ISIS and Al-Qaeda may emboldened amid a messy withdrawal.
Despite the news abroad, U.S. stocks managed to open higher as the S&P 500, Nasdaq, and Dow all rose this morning. Bitcoin is up as well, topping $50K for the first time since May. There are several scheduled economic events that could affect investor sentiment this week. Services and manufacturing PMI were both released this morning. Slowdowns occurred in both sectors with supply chain and staffing issues dragging production downward.
On Tuesday, new home sales data is set to be released. On Wednesday, we will see durable goods orders. A slight decrease is forecasted there, as supply chain disruptions and other effects from the uptick in Delta cases are feared.
The most anticipated scheduled event for this week is the Fed’s annual Economic Symposium, which will be held Thursday through Saturday. Normally this meeting occurs in Jackson Hole, Wyoming. However, this year it is to be held virtually. Investors are looking to this gathering for direction regarding the taper timeline, interest rate updates, and more.
On Friday, we may gain better insight on the consumer outlook with consumer sentiment data. Income, consumer spending, and inflation data are also coming on Friday. These releases should paint a better picture on how the individual consumer is faring, while providing an update on inflation, excluding food and energy prices.
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