Gold Recovers back to $1,800/Oz - What is happening?

Introduction

Welcome back to our Gold News series, where we bring you short and sweet updates on the global economy. Today’s news discusses the Gold price recovery & the market concerns on the Federal Reserve addressing the tapering and inflation.

US Economy Highlights

Gold Rises back to above $1,800/Ounce as the dollar falls due to rising cases of the Coronavirus, which ultimately pushed back the Fed tapering date.
The rise in COVID-19 cases accelerated the need for the Fed to schedule its meeting on the 27th of August in Wyoming to address inflation concerns and possibly the tapering date.
US Factories and Service providers reported slower growth for the month of August. Delta variant spreading across the country has sparked a wave of infections and hospitalisations. Consumers are concerned about the delta variant.
Fed Chairman Jerome Powell has been striving to deal with the rising inflation concerns as many expect it to go out of control. Inflation figures for the month of July saw a 5.4% increase.
The market believes either scenario could happen; the price gains in general goods and services will begin reversing on their own as the US economy recovers. However, many also believe that the rising inflation is a serious concern and may steer out of control should the Fed not implement higher interest rates.
Many industry leaders believe that the big fear is that the Fed will be slow in addressing inflation concerns leading to a sustained rise in prices and a housing bubble. Policymakers will have to deal with such problems by implementing higher interest rates and subsequently differing the possibility of economic recovery.