Investor Outlook: Gold prices climb to record highs as China and central banks boost demand

The Gold rally has accelerated since August and delivered a +12% return over the past month - 98th percentile for monthly returns since 1980 - supported by rising futures positioning and ETF inflows, as well as a seasonal pick-up of central Bank demand. Overnight, however, Gold climbed to a fresh record, with traders weighing China's new plan to become a ...

Thank you. It is a pleasure to be back here in Rhode Island. The last time I had the opportunity to speak to the Greater Providence Chamber of Commerce was in the fall of 2019. I noted then that, "if the outlook changes materially, policy will change as well." Little did any of us know! Just a couple of months later, the COVID-19 pandemic arrived. Both the economy and our policy evolved dramatically in ways no one could have predicted. Along with actions by Congress, the Administration, and the private sector, the Fed's aggressive response helped stave off historically severe downside risks to the economy. The COVID pandemic came on the heels of the painfully slow decade-long recovery from the Global Financial Crisis. These two back-to-back world historical crises have left behind scars that will be with us for a long time. In democracies around the world, public trust in economic and political institutions has been challenged. Those of us who are in public service at this time need to focus tightly on carrying out our critical missions to the best of our ability in the midst of stormy seas and powerful crosswinds. Throughout this turbulent period, central banks like the Fed have had to develop innovative new policies that were designed to deliver on our statutory goals during times of crisis, rather than for everyday use. Despite these two unique, extremely large shocks, the U.S. economy has performed as well or better than other large, advanced economies around the world. As always, it is essential that we continue to look back and learn the right lessons from these difficult years, and that process has been ongoing for more than a decade. Turning to the present day, the U.S. economy is showing resilience in the midst of substantial changes in trade and immigration policies, as well as in fiscal, regulatory and geopolitical arenas. These policies are still emerging, and their longer-term implications will take some time to be seen. Economic Outlook *POWELL: UNCERTAINTY OVER INFLATION’S PATH REMAINS HIGH FED CHAIR POWELL: DOWNSIDE RISKS TO EMPLOYMENT SHIFTED BALANCE OF RISKS, PROMPTING LAST WEEK'S RATE CUT POWELL: RATE CUT WAS ANOTHER STEP TOWARD A MORE NEUTRAL POLICY STANCE FED’S POWELL REITERATES THERE IS NO RISK-FREE POLICY PATH AHEAD Fed's Powell: Reasonable base case is that tariff-driven inflation effects will be relatively short-lived. Powell Says Policy Is Still Slightly Restrictive And Ready To Change If Needed

Gold futures saw nine new all-time highs in September, with prices rallying over 8.5%. This surge was driven by the anticipation of further Federal Reserve interest rate cuts, with markets pricing in several cuts into next year. Additionally, central bank purchases, particularly from China, suggest a continued trend of gold accumulation as nations seek to ...