Will the Fed Support Gold Prices in 2021? | Metals Mine

  • Will the Fed Support Gold Prices in 2021?

    From sunshineprofits.com

    Gold ended 2020 at $1,891, partially thanks to monetary policy easing. In 2021, the Fed may not trigger a comparable rally in gold, but it should offer gold prices some support. Welcome to 2021! I hope that it will be a wonderful year for all of you; a much healthier, calmer and normal year than 2020 was. And even more profitable of course! Indeed, at least gold bulls could be satisfied with the last year, in which the price of gold jumped from $1,523 to $1,891 (London A.M. Fix)! It means that the yellow metal gained more than 24 percent, as the chart below shows. chart I know that 24 percent does not look ... (full story)

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Trader#71FE
Jan 5, 2021 8:48pm
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If the implication of your analysis is that we will not see beyond 2074$, or that Gold will top well below that value this year - it is hard to accept. The Fed is not ahead of the market - the market to the Fed is both a) a policy transmission vehicle, and b) a feedback mechanism. What happens then really depends on developments in the real economy and the Fed's policy prescriptions in response as well as the feedback (with a lag) it gets from the market on same. Therefore, there can be no hard limits to what to expect from the Fed in specific terms and certainly there are no hard limits to how much a market might grow or decay over any future period. Life (but especially markets) is simply unpredictable. But looking at the charts and reading the underpinning dynamics (as opposed to statics) of emergent market fractures I would not be surprised to see Gold top its highest point last year in say another 3 months or less and I could easily be right (with only an outside chance of being wrong).

The Crow (-_-)
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