The Federal Reserve’s years-long campaign to sheepishly back away from its own policy forecasts continued in earnest last week when it officially reduced the four expected 2016 quarter point hikes, suggested back in December, to just two.
India has had a long-standing love affair with gold. At Indian weddings, some of the brides get so much gold jewellery that it weighs them down. There are upwards of 15 million weddings every year in India.
Silver Eagle sales will likely jump by 25% in the first quarter due to deteriorating market conditions. During the first three months last year the U.S. Mint sold 12 million Silver Eagles. Already, sales of Silver Eagles have reached 13 million. There are two weeks remaining in March and the U.S. Mint will likely sell another two million.
The campaign rhetoric so far indicates that a Trump-led Republican administration would implement “big government conservatism,” policies, financed by increased borrowing and money printing. This would put upwards pressure on gold prices.
The Federal Reserve held interest rates steady on Wednesday and cut the expected pace of future monetary policy tightening as a weak global economy continued to weigh on policymakers despite ongoing U.S. growth and a healthy labor market.