The price of gold has had a rather eventful week that has been deeply impacted by economic data, events on the world stage, and policy decisions made by the current administration. With the risk of a third global conflict rising due to the assassination of a Hamas leader in Iran by Israel, there was some safe haven purchasing of the precious metal. Wars and the threat of conflict, especially between two nations as important to the Middle East as Israel and Iran, always play a huge role in gold prices.
A report published by ZeroHedge says:
The Bank of England’s MPC have just released their interest rate decision with a 0.25% cut, bring the key rate to 5%. Markets were waiting to see if the BOE would pull the trigger which would be the first rate cut since 2020. There was some uncertainty whether a rate cut would come as inflation has remained stubbornly high but it appears these pressures are finally starting to ease.
Elsewhere, the FOMC surprised exactly no one by maintaining rates, yesterday. The Committee would like to see more progress of annual US inflation heading back towards 2%. Earlier in the day the Bank of Japan raised its main interest rate to 0.25% from zero. It also said it would reduce its government bond buying by half, prompting the Yen to rally against the dollar.
Will the US election result impact the price of gold? That’s what Jan Skoyles is asking this week. Interestingly research from the World Gold Council finds that historically there has been very little volatility in the gold price, in the period surrounding the US election. But what of the longer-term impact, and does it matter which party has control of Congress. We cover it all.
The report provides a link to a video on YouTube featuring an interview with highly influential investor Jim Rogers. Jim has well over half a century of investing experience and provides a unique perspective that manages to balance that experience with new and bold observations. Over the last few years, Rogers’ concern about the financial future of the United States has continued to grow. And while he is a big believer in putting money into precious metals, he’s been more focused on investing in silver at the moment.
Check out the interview below:
It doesn’t take a financial wizard to see that the world is economically unstable right now. You can reach such a conclusion simply by taking a look at how much turmoil is going on in both the U.S. with the presidential election and the wars waging in Europe and the Middle East.
Things are more uncertain now than they’ve been in a long time. Preparedness never goes out of style. Pay attention to the markets for precious metals. Make it a priority to invest in them. Having some kind of insurance policy to ensure you have resources for survival if things take a southerly turn is the practical application of wisdom.
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