Gold traded under pressure as capital continued to pour into U.S. equities. As of 4:30 PM, EST gold futures are trading down, with the most active August 2021 contract currently fixed at $1775.20, after factoring in today’s decline of $8.20 (-0.45%). Concurrently U.S.

Yesterday for the first time since the FOMC meeting concluded and Powell held a press conference, he spoke, this was durin

Today for the first time since the FOMC meeting concluded last week, Chairman Powell held a press conference where he spoke during congressional testimony. Precious metals traders and investors were listening intently for subtle hints from Chairman Powell, who can shape the future direction of gold and silver prices.

There is definitely a conundrum when it comes to the Federal Reserve’s handling of current inflationary rates. The Fed made it clear that they would continue to let inflation run hot compared to their previous monetary mandate. Whether current inflation levels are temporary or sustained will determine when and how much the Federal Reserve raises rates.

For the first time since the onset of the global pandemic, which began in March 2020, the Federal Reserve began dramatic steps to keep the economy from crashing and then create an accommodative monetary environment for the economy to recover once the vaccine rollout began.

Gold futures experienced the largest percentage drop, even bigger than January 8, 2021, when market forces drove the precious metal 4.18% lower. Currently, gold futures basis, the most active August contract, is trading at $1770.90, a net decline of $90.50 or 4.85%.

In yesterday’s opening letter I spoke about the fact that analysts seemed to be divided into two camps in regards to how they view the current monetary policy of the Federal Reserve. My view was that the Federal Reserve would maintain its dovish monetary policy, remaining extremely accommodative and continuing to keep interest rates near zero.

Tomorrow at 2:30 EST, this month’s FOMC meeting will conclude, which will be immediately followed by a statement and a press conference including a question-and-answer period by the chairman of the Federal Reserve, Jerome Powell.

Beginning tomorrow, the Federal Reserve will begin its FOMC meeting for June, which will conclude on Wednesday. Following the conclusion, the Federal Reserve will release a statement, which a press conference will follow by Chairman Jerome Powell.

The most recent consumer price index data, which was released yesterday, indicated that the annualized inflation rate is now at 5%. This is the highest level of inflation since the recession following the banking crisis in 2008.