Intimately Intertwined With the Price of Gold

Intimately intertwined with the price of gold, which, in turn, is tied to the national banks and their policies, the U.S. dollar is awaiting information from the Fed today, but it nevertheless clung to a few modest gains from yesterday. U.S. inflation has risen and fallen with the sun, but it is a persistent specter that continues to haunt the USD.

A welcome respite for the beleaguered currency, however, has been the steady increase in U.S. retail sales across the board. In fact, the sales numbers are nearly back up to pre-pandemic levels.

Along with the widespread media coverage of the so-called “America is Back” campaign, the shift in spending from goods to services once again has helped the perception, if not the reality of American economic recovery.

Inflation seems to be quelled for the week, stopping somewhere around 6% for sales by the end of trade today.

A policy meeting later today among Federal representatives is reported by Metanews agents to be about the further titration of assets and the impact of 2020’s stimulus bills.

Partial to hikes and defensive measures concerning the dollar and asset tapering, the Fed is reported to have taken a much more reactionary stance to this dilemma than you might imagine, given their historical affinity for short-term fixes.

An expert commented that if the Fed even whispers about inflationary tapering tactics, it will cause a rally for the dollar which could dispel the ghosts of previous failing that occurred earlier this year. Like gold, we are seeing a huge dependence on today’s Fed meeting, and the end of the day will definitely yield some interesting results. Intimately intertwined with the price of gold, the dollar can’t avoid the Fed’s powerful hand at work.