We would like to take a moment to discuss some recent economic developments and their implications on precious metals, specifically in relation to our ERC20 tokens - Gold Standard (AUS) and Silver Standard (AGS).
In a recent address at the Economic Club of New York, Federal Reserve Chair Jerome Powell highlighted the ongoing challenges presented by persistent inflation. Despite a modest decrease, with the Consumer Price Index (CPI) at 3.7% as of October 12, inflation continues to significantly exceed the Federal Reserve's target of 2%. This situation underscores the volatility of the current economic landscape and heightens the importance of reliable investment strategies.
In Australia, we have experienced a similar trend with unexpected inflation data, showing an increase of 1.2%. This development suggests a potential rate hike in the near future, aligning the Reserve Bank of Australia's policy stance with that of the Federal Reserve. These parallel circumstances necessitate a closer examination of their potential impact on gold prices.
Gold has historically served as a safe haven during times of economic uncertainty and inflationary pressure. In the current climate, where the Federal Reserve is navigating the complexities of monetary policy, the appeal of gold as a stable store of value is becoming increasingly evident. Despite the Federal Reserve's efforts to address inflation through interest rate adjustments, the persistence of high inflation rates may inevitably bolster the demand for gold.
Given the cautious approach anticipated from the Federal Reserve in the coming months, and considering the ongoing global geopolitical tensions, investors may turn to gold as a means of safeguarding their wealth. This could potentially lead to an upswing in gold prices, reflecting an increase in demand.
Looking at Gold/USD, we can see there is still much more room to go to the major resistance roughly $85 higher:
Conversely, should there be a rapid selloff in the markets, the Federal Reserve may be compelled to undertake a significant policy shift to stabilise the economy. This could result in a liquidity injection, mirroring the market dynamics observed in 2020, and subsequently benefiting gold prices.
Political considerations, particularly with the upcoming 2024 elections, may also play a role in the Federal Reserve's policy decisions. Maintaining a stable economic environment is paramount, and any missteps could lead investors to seek refuge in gold, further underlining its role as a reliable store of value in times of uncertainty.
In this context, our Gold Standard (AUS) and Silver Standard (AGS) tokens represent a tangible and secure investment option. Backed by real gold and silver, and verified quarterly by PKF, these tokens provide a direct link to the enduring value of precious metals. Ensuring their security, they are stored in world-class secure facilities, offering investors peace of mind and a sense of stability.
AUS & AGS are available at reputable platforms such as Ainslie Crypto, CoinSpot, Metex, MRHB DeFi, and Bamboo. Embrace the future of stable and secure digital currencies and stay ahead in this ever-changing financial world.
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