Gold: What is the FED doing?

While the Europeans want to stick to their previous monetary policy, the US central bankers announced a major change in strategy at the beginning of August.

In the future, there is one thing they want to achieve above all: full employment. Price stability, on the other hand, should move back on the list of priorities. Inflation rates of over two percent should be tolerated in future and not automatically lead to a more restrictive monetary policy. Analysts therefore do not expect higher interest rates in the foreseeable future. The FedWatch tool of the futures exchange operator CME Group currently shows a 100 percent probability that we will see the same interest rate level in March 2021 as today – namely zero to 25 basis points.

On Monday morning, the gold price was higher. Until around 7.30 a.m. (CEST), the most actively traded future on gold (December) rose by 6.20 to 1,954.10 dollars per troy ounce.