In March, we saw a continuation of the rally in bond yields that started in February. As the chart below shows, the 10-year real interest rates have soared from -1.06 on February 10 to -0.66 percent on March 23.
The U.S. CPI inflation rate rose 0.6% in March, following a 0.4% increase in February. It was the biggest monthly jump since August 2012. The move was larger than most analysts expected. However, I’m not surprised at all, as after February...
Last week, The Federal Open Market Committee (FOMC) published minutes from its last meeting in March. They show that – in light of positive economic indicators – the members of the Committee turned out to be more optimistic about the U.S....
Brace yourselves, inflation is coming! Importantly, not only grumblers such as myself are talking about rising prices right now, but even the Fed officials themselves admitted that inflation will jump this year. Indeed, in the latest dot...
The March nonfarm payrolls were surprisingly strong. If the current favorable trend in the U.S. labor market continues, gold may struggle. As the chart below shows, in March 2021, total nonfarm payrolls rose by 916,000 , following gains of...
Biden just announced an ambitious and expensive infrastructure plan. Will it rebuild gold? Yesterday (Mar. 31), President Joe Biden announced the big infrastructure plan, the second major legislative initiative after the $1.9 trillion...
Neither the Suez Canal blockade nor the SLR exemption’s expiration should significantly affect gold, whose price is likely to be soon shaped by other factors.
Both Powell and Yellen testified before Congress. They sounded upbeat on the U.S. economy, but gold’s reaction was weak. What a combo! Both Fed Chair Jerome Powell and the U.S. Treasury Secretary Janet Yellen testified before Congress this...
In the last edition of the Fundamental Gold Report, I analyzed the latest FOMC statement on monetary policy and economic projections. Today, I would like to focus more on Powell’s press conference. My reading is that the Fed Chair sounded...
Twin deficits could negatively affect the U.S. economy, thereby supporting the yellow metal. Twins. Many parents will tell you that they double the blessing. But economists would disagree, claiming that twins – i.e., twin deficits – could...