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Investing.com/Wisdom Tree/7-22-2021
“So, has the Fed now adopted a hawkish stance? Should markets be spooked? At WisdomTree, we don’t think so. What the central bank has done amounts to forward guidance, a mechanism for managing market expectations. This was extremely important for the Fed to do to maintain its focus on stabilising prices and maximizing employment without risking becoming the cause for major market volatility. Monetary accommodation from the central bank remains at crisis levels – something that is no longer required for an economy that is starting to find its footing.”
USAGOLD note: Gold rallies often come suddenly, sometimes seemingly without cause, and quite often when sentiment has ebbed to its lowest. As we often say, the best time to buy precious metals is when everything is quiet, i.e., time like now. “Gold’s price decline following the central bank’s latest meeting,” says Wisdom Tree, “may seem like an overreaction in hindsight.”
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