Gold 1968,495
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EURUSD 1,1902
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DJIA 28728,50
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OIL.WTI 43,11
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DAX 13066,13
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The trading week is over. After Powell’s speech, we can take a look at what awaits us next. The speech itself contained some important points that will have an impact on the entire US financial system as well as on the world economy.
Gold
Thus, the US Federal Reserve is abandoning strict inflation regulation and shifting its focus to employment. After all, it is clear from the fundamentals of the economy that economic growth depends mainly on a few basic indicators – production and consumption. If consumption increases, then production also increases. And consumption can only increase due to an increase in employment or an increase in wages. The Federal Reserve is now accepting that as many people as possible should find new jobs.
This means that the US Federal Reserve will soon stimulate the economy with a lot of new dollars and low interest rates. Such actions will inevitably lead to higher inflation and a devaluation of the dollar.
It is therefore worth looking at assets that are protected against inflation, primarily gold and as an option stocks of companies.
Pound Sterling
The British pound showed the highest level for this year and it is likely that growth will continue. All this is due to the weakening US dollar and a good economic backdrop in the UK. Upward movement is possible up to 1.3400 as the serious resistance zone at 1.3300 was overcome on Friday. However, a slight pullback on Monday is possible and further highs are possible.
Gold
After Powell’s statements, the gold is back on top again. Now investors are even more confident that metals will only become more expensive. Gold showed excellent growth on Friday and in the near future we will see precious metals conquering high after high. So far, the target is a powerful level of $2,000 per ounce, followed by an exit at $2100.
What’s waiting for us today?
03.00 China Manufacturing Index for August
09.00 Consumer price index in Spain since the beginning of the year
14.00 Consumer price index in Germany since the beginning of the year
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