Make Kitco Your Homepage

Fed Chair Powell's keynote at Jackson Hole could 'reinvigorate' gold price action: TD Securities

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) All eyes are on the Federal Reserve Chair Jerome Powell's keynote address on Thursday at the virtual Jackson Hole symposium, according to TD Securities strategists. “We expect the Fed Chair to effectively pre-announce the outcome of the Monetary Policy Framework Review, which suggests the formal adoption of average inflation targeting,” the strategists write. In response, gold and silver could see some new buying interest come into the space. “Precious metals could find support in a change in forward guidance to make clear that the Fed wants inflation to run above the 2% goal as a make-up strategy. While such an announcement by no means would constitute a ground-breaking surprise, the effects of such a policy may not yet be fully priced … The formal announcement could also reinvigorate flows into precious metals, which have slowed substantially following the pullback.” Silver remains TD’s precious metals favorite due to its “clean positioning slate, rising industrial demand, ultimately resilient investment demand, and inventory constraints.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.