Central Bankers, Political Chaos positive for Gold, Silver
LONDON (Scrap Register): The combination of political chaos and recent speeches by key central bankers are providing the perfect precious-metals environment, said TD Securities in a snippet.
Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi did not discuss the monetary-policy outlook during highly anticipated speeches Friday, and as a result investors continued to bid gold on uncertainty about whether inflation will rise as much as central bankers expect, TDS added.
Furthermore, political chaos in Washington will be a central focus with the debt limit deadline on the horizon and the risk of a government shutdown growing as President Trump tries to pass a budget including the boarder wall, TDS noted.
Indeed, the Fed ambiguity, political chaos, ever-present North Korea tensions and equity market risks have culminated in a low rate and weak US dollar environment, which helped the yellow metal finally break above $1,300 an ounce on Monday afternoon.