If you are wondering what is behind this new found optimism and momentum you have to look no further than the Federal Reserve’s announcement of a major shift in its long-term monetary policy stance. In his highly anticipated speech at the annual Jackson Hole Symposium, Federal Reserve Chair Jerome Powell basically said that the central bank is going to sacrifice inflation and focus on rebuilding the labor market.
Okay, maybe his message was a little bit more nuanced. In his speech he said: “Following periods when inflation has been running below 2 percent, appropriate monetary policy will likely aim to achieve inflation moderately above 2 percent for some time.”
As for the labor market, he added: “In conducting monetary policy, we will remain highly focused on fostering as strong a labor market as possible for the benefit of all Americans.”
The gold market took Powell’s comments to mean that the Federal Reserve is going to let inflation run hot, which will push real bond yield, which accounts for inflation, deeper into negative territory. This is the perfect environment for the gold market.
Of course, being the Fed Chair, Powell had to muddy the waters a little bit. In the question and answer portion of his presentation, he walked back some of his dovishness and said that he expects inflation would only be moderately above 2% and that they would be quick to act to bring inflation back down.
As you can expect gold investors heard those words and within an hour the price of the precious metal dropped $72.
And that brings us to today, where gold has recouped its losses and is heading into the weekend with a nearly 2% gain Friday.
Many analyst have said that they are looking through the Federal Reserve’s latest messaging and instead focusing on the current economic environment. The global and U.S. economies continue to feel the effects of the COVID-19 pandemic. The reality is that with millions of people unemployed, U.S. interest rates will remain low for the foreseeable future and at some point the Federal Reserve is going add liquidity to the system.
Many analysts the Kitco News team have talked to said that you can’t find a better environment for gold.
So on that note, have a great weekend.
Three Foothills units placed under 'outbreak watch' as Alberta reports 153 new COVID-19 cases – Calgary Herald
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“A unit can be on watch without having any active patient or staff cases.”
AHS added that patients, families, staff and physicians are all notified when a unit is placed under watch.
The outbreaks at Foothills continued to grow Friday. One more patient tested positive for COVID-19, while five more hospital staff were infected. In total, positive cases in 17 patients and 18 health-care workers have been linked to the outbreaks.
More than a dozen more workers at Foothills have also been instructed to isolate, for a total of 136 staff members currently in quarantine. More than 300 staff have been tested for the novel coronavirus since the start of the outbreaks.
No new deaths at Foothills were reported Friday. Three patients have died due to the outbreaks.
AHS said all patients and almost all health-care workers linked to the outbreaks have been identified, with testing underway.
Though the Foothills outbreak continues to expand, Alberta reported Friday that a much smaller outbreak at another Calgary hospital has been declared over. An outbreak at the Peter Lougheed Centre resulted in infections of three people, all of whom have recovered.
153 new COVID-19 cases
Alberta reported 153 new cases of the coronavirus Friday, bringing the province’s total case count since March to 17,343.
The new cases came from 14,211 tests, about a 1.1 per cent positive rate. There are now 1,497 active COVID-19 cases in Alberta, an increase from Thursday. More than half of those cases (773) are in the AHS Edmonton zone.
Alberta reports more than 100 COVID-19 cases for 16th straight day – CTV Edmonton
Alberta reported 153 cases of COVID-19 Friday as active infections increased to 1,497.
The province has added more than 100 cases every day since Sept. 9, when it reported 98 new cases.
Fifty-six Albertans are being treated for the coronavirus in hospital, including the 14 patients who are in intensive care.
Alberta did not report new deaths Friday, keeping the total at 261.
The Edmonton zone continues to have more than half of Alberta’s count with 786 confirmed cases, while the Calgary zone has 518.
Alberta has reported 17,343 cases of COVID-19 to date.
Alberta reports 153 new cases of COVID-19, no new deaths – CBC.ca
Alberta reported 153 new cases of COVID-19 Friday bringing the number of active cases in the province to 1,497, up 35 from the day before.
A total of 56 people were being treated in Alberta hospitals for the illness, including 14 in intensive care.
No deaths were recorded leaving the number at 261.
Three more outbreaks at schools — Calgary’s Clarence Sansom and Glenmeadows schools and Elsie Yanik Catholic School in Fort McMurray — have been reported, bringing the number of schools with outbreaks to 35.
Outbreaks are declared when a school has two or more cases.
Five schools, with five or more cases, are on a provincial ‘watch’ list. Four of those schools are in Edmonton, with Centre High the most recent addition.
The regional breakdown of active cases was:
- Edmonton zone: 786 up 13 from the day before.
- Calgary zone: 518 up 23 from the day before.
- North zone: 129 down one from the day before.
- South zone: 41, up one from the day before.
- Central zone: 16, down three from the day before.
- Unknown: seven, up two from the day before.
To date 968,031 Albertans have been tested for the coronavirus. So far 15,585 have recovered from the disease.
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