The minutes from the July FOMC meeting were released today. The document indicated that most Federal Reserve officials still believe that high levels of inflation are an ongoing threat and merit additional interest rate hikes. However, there was not an overall unison regarding the path forward in what can be best described as mixed messages amongst Federal Reserve members.

One could expect that the latest government report on retail sales revealing that they increased by 0.7% in July would garner a positive reaction in U.S. equities. However, it had the exact opposite effect taking all three major indices lower.

Prices of both spot and futures gold declined between 0.30% and 0.40% today, a direct correlation to dollar strength and higher U.S. Treasury yields. The dollar gained 0.35% in trading today taking the index to 103.05. After last week’s dramatic decline in gold, the first trading day of the week is indicating a continuation of the down-trend based on the most recent economic data.

David Lin of the David Lin report and Gary Wagner, Editor of TheGoldForecast.com, discusses the next moves for the dollar, gold, and the Fed.

*This video was recorded on August 1, 2023

In an article penned by Benjamin Purvis, and Simon Login in Bloomberg News written on August 1 and updated today where they reported a shocking revelation in the financial rating of the United States government.

Gold spot and futures both declined by over 1% today as traders reacted to dollar strength and stronger yields on U.S. Treasuries. But that explanation lacks the complete backdrop to the multiple reasons why gold is trading under pressure today.

Jesse day and Columnist for Kitco Gary Wagner recorded this interview last week.

00:00 Introduction

00:30 Weakness in the US Dollar

06:18 Gold Forecast

Today the Bureau of Economic Analysis (BEA) released its most current inflationary data vis-à-vis the PCE (Personal Consumption Expenditure Price Index). The report revealed that in June inflationary pressures continues to diminish while consumer spending continues to expand.

Yesterday’s article was composed within hours after Powell had concluded his press conference. While his statements were fresh in the minds of reporters and analysts asking questions, thinking about 24 hours after the fact his statements have left me bitter but more importantly questioning his ability to correctly communicate upcoming potential changes in the Federal Reserve’s monetary policy.

Today the Federal Reserve concluded its July FOMC meeting leaving only three remaining meetings this year. As expected, the Federal Reserve raised rates by ¼% taking its terminal benchmark rate to between 5 ¼% and 5 ½%, no surprise there. This took the fed funds rate (which is used to set the prime rate) to its highest level since 2001 or in 22 years.