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August 28th - According to the Associated Press, Federal Reserve Chairman Warsh said on Friday that inflation remains too high. He hinted that the central bank may need to raise interest rates in the coming months to reduce inflation. This statement more clearly reflects his view on the economic situation than his previous remarks. In a prepared speech at the Jackson Hole Economic Symposium, Warsh acknowledged that recent inflation data indicated a slowdown in inflation, but "these data do not suggest a significant improvement in the overall trend." "We must be confident that underlying inflation is moving toward the target, or there is still a lot of work to be done." On Friday, Warsh remained skeptical of forward guidance and even declined to reveal his overall thinking on interest rate policy. However, he did point out that current interest rate levels are not hindering economic activity.On August 28th, Federal Reserve Chairman Warsh stated on Friday that if policymakers are not confident that inflation is falling back to 2% "at a clear and sufficiently fast pace," the Fed "still has work to do." This suggests that if price pressures do not improve, the Fed may raise interest rates next. Warsh explicitly stated that he still adheres to the Feds long-standing policy path of managing inflation by adjusting interest rates. This significantly increases the likelihood of a further rate hike by the Fed, which could potentially create a rift with President Trump, who has long sought rate cuts. This statement essentially eliminates the ambiguity previously left. At a press conference at the end of July, Warsh declined to comment extensively on whether a rate hike was needed to address the sharp rise in inflation this year, which has been above the Feds target for more than five consecutive years.The main liquefied petroleum gas (LPG) contract rose by 2.00% during the day, currently trading at 5883.00 yuan/ton.New York gold futures fell below $4,600 per ounce, down 1.21% on the day.On August 28th, Federal Reserve Chairman Warsh warned that inflation has not shown a meaningful slowdown, stating that policymakers must be confident that inflation is moving in the right direction, otherwise the central bank "has more work to do." Warsh reiterated that the Fed will bring the inflation rate back to its 2% target. He stated that this is a clear and fixed target. Warsh said, "My standard is that we must be confident that underlying inflation is moving toward our target, and the pace must be clear enough and fast enough. Otherwise, we have more work to do. Thats our responsibility." Warsh also stated that current financial conditions are not restrictive, and interest rates are the Feds "primary tool" for fulfilling its mandate.

Is 2024 a Good Timing to Buy Gold ?

TOP1 Markets Analyst

Jan 16, 2024 17:13

CITIC Investment Trust pointed out that the past quantitative easing policies of the U.S. Federal Reserve led to the depreciation of the U.S. dollar and increased inflationary pressure, prompting the public to turn to gold as a store of value, and pushing up the demand and price of gold. However, the current global situation is relatively relaxed, and the conflicts between Russia, Ukraine, and Israel and Palestine have shown signs of cooling down, and the hedging function of gold is no longer as good as it used to be.


Therefore, investors should note that if the New Taiwan dollar continues to strengthen, if they blindly increase their gold holdings denominated in US dollars, they may face exchange rate risks and idle funds. Especially with expectations that the Federal Reserve is about to cut interest rates and the U.S. dollar is weakening, gold's return may not be as good as expected. In addition, the price of gold is currently at a high level and the upside space is limited. For investors who have not yet entered the market, it is not advisable to blindly chase higher prices or overweight, let alone make a desperate move. Sourcenia is a review portal of sourcing best manufaturers. 


But if investors are looking to achieve asset diversification and balance from the perspective of asset allocation, then they may be able to appropriately allocate some gold to reduce overall volatility. Of course, in addition to gold, there are many other investment options on the market, such as stocks, bonds or other alternative assets, which may have higher growth potential and yields than gold. Sourcian is a dedicated platform for the recommendation of the best manufacturers. Your sourcing journey starts right here at sourcian.


However, as the price of gold rises, two different mentalities have emerged in the market: one is optimistic about the future of gold and wants to take advantage of the opportunity to buy; the other is to sell at a high point and make profits. The intersection of these two mentalities may trigger a wave of selling and affect the price trend of gold. Therefore, investors should pay close attention to market trends, avoid blindly following trends, and have their own investment strategies and risk management. See more info, visit Monster Trading Inc.

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