Make Kitco Your Homepage

Fed finally admits path is ‘unsustainable’, so why didn’t gold price explode? Gary Wagner

Kitco News

Gold is faced with a double-edged sword of inflationary pressures, said Gary Wagner, editor of TheGoldForecast.com, who expects near-term downward pressures to prevail.

Wagner discussed with David Lin, anchor for Kitco News, the Fed’s options after Fed Chair Jerome Powell admitted in a testimony Tuesday that the current economic path is “unsustainable.”

Gold is faced with the “double-edged sword of inflationary pressures,” Wagner said.

“On the one hand, if we get inflation rising, then Powell will at some point, have to act,” he said. “On your question on gold, I think that gold participants were largely ignoring yesterday’s statements because we saw the market trade flat. Today, we did get a rise from that, it was kind of a knee-jerk reaction that was delayed, and gold traded up to $1,796 before the yields began to [go up].”

For Jerome Powell’s statements and Wagner’s gold price forecasts, watch the video above. Follow David Lin on Twitter
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.