Commodities
Gold Bulls Delight In Jackson Hole as Powell Juices Price Rally
- The Fed is now ‘getting in line,’ Infrastructure Capital says
- Lower yields, weaker dollar and ETF inflows seen aiding prices
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Gold’s record-setting rally above $2,500 an ounce looks to have further to run as the Federal Reserve prepares to chop rates, traditional drivers such as lower yields return, and Western investors pile back in.
“Everybody thought the Fed was going to be the last to cut, but now they’re getting in line,” said Jay Hatfield, chief executive officer of Infrastructure Capital Advisors, who recently went long on gold options for the first time in years. Chair Jerome Powell’s Jackson Hole speech — which promised rate cuts — was a watershed moment for bullion, according to Hatfield.