How Much Power does the Fed have over Gold and Metals? We will find out!
Gold prices are hovering near record highs and are pausing the head of today’s most important Federal Reserve decision.The world and the market seem to be fixated on whether the Federal Reserve will cut interest rates by quarter point, or a 50-basis point cut and while gold will definitely have the potential to move big on this number the Fed does not have total control. The Fed decision isn’t going to erase the fact that the fundamentals for physical gold are better than they have been in a very long time.Inflation and geoplitacl risk and ciutries trying to diversify their money away from the US where the debt has hit a record high that you may have to go back to the Old Testament to match it.The Federal Reserve has the fate of the gold markets in its hands today its influence may wane as central bank buying around the globe continues to be strong.
It has also I found it very interesting that there have been many reports about Saudi Arabia’s loading up on physical gold not only for their own coffers but putting a lot of gold in Swiss bank accounts the latest story comes from Bitcoin news thatone gold analyst alleges Saudi Arabia Has Been Secretly Piling Gold Since 2022They write that “ Nieuwenhuijs, a gold market analyst, claims that Saudi Arabia has been covertly buying gold since 2022, trying to get its hands on physical gold due to its neutral and sanction-proof traits. According to his figures, 160 tonnes have been acquired without disclosure, likely to avoid upsetting the U.S. government for these actions.
Jan Nieuwenhuijs, a gold market analyst, states that Saudi Arabia, an oil powerhouse nation, has been secretly purchasing gold since 2022. In a recent report, he alleges that the Saudi Central Bank has acquired 160 tonnes of gold due to its neutral and sanctions-free characteristics.
Nieuwenhuijs explains that Saudi Arabia has been likely another driver of the current bull market, with its demand boosting gold prices. To arrive at his conclusion, he explains that rumors about this behavior have been circulating among industry insiders for years.
Despite the concern Chinese economy copper is incredible comeback over the last couple of weeks the federal reserves decision could impact copper as well but the fact is that the physical tightness for copper and the globe are still apparent even with the slowdown and the Chinese economy.
If the Chinese economy picks back up or if the Chinese government comes up with a massive stimulus package copper could make an explosive move to the upside. Copper is set to fall short of demand between now and 2027.
Even with weak data ibn China Bloomberg News reported that at a fundamental level, recent drawdowns in domestic copper inventories in China have raised hopes that the worst of this year’s downturn could be over.China’s central bank signaled late Friday it would step up its fight against deflation and prepare more policies to revive the economy, after credit data showed private confidence remained weak.More By This Author:The Energy Report: Next Level – Wednesday, September 18The Energy Report: Slow Motion – Monday, September 16Running Out of Money. Manic Metals Report
In The Fed’s Hands – Manic Metals Report
