Gold is faced with a double-edged sword of inflationary pressures, said Gary Wagner, editor of TheGoldForecast.com, who expects near-term downward pressures to prevail.
Wagner discussed with David Lin, anchor for Kitco News, the Fed’s options after Fed Chair Jerome Powell admitted in a testimony Tuesday that the current economic path is “unsustainable.”
Gold is faced with the “double-edged sword of inflationary pressures,” Wagner said.
“On the one hand, if we get inflation rising, then Powell will at some point, have to act,” he said. “On your question on gold, I think that gold participants were largely ignoring yesterday’s statements because we saw the market trade flat. Today, we did get a rise from that, it was kind of a knee-jerk reaction that was delayed, and gold traded up to $1,796 before the yields began to [go up].”
For Jerome Powell’s statements and Wagner’s gold price forecasts, watch the video above. Follow David Lin on Twitter