You’ll have a better idea on the next round of stimulus from the Biden administration as well as get some clarity on taxes,” Moya told Kitco News.
For gold, this volatility could be excellent news as the precious metal gears up to make a run towards $1,900.
If the economy is starting to lose some of this skyrocketing momentum, that supports the Fed’s current stance,” Moya said.
“If Fed waits until Jackson Hole, which is at the end of August, to taper its asset purchases, it will be very good for gold.
“For the Fed to complete its job, you’ll need to see the infrastructure spending passed; you’re going to need to see a lot more help for the economy.
“Gold is slowly becoming more bullish for more people.
“Every corporate update is signaling that these pricing pressures are going to be pretty powerful.
“As we have the impact of inflationary pressures really punish emerging markets first, you’re going to see a stronger central bank demand for gold.
“There will definitely come a time when inflationary pressures are going to derail risk appetite broadly.