Gold regains momentum to $1,776 - All eyes are on the Fed's Policy Meeting

Introduction

Welcome to our Gold news series, where we bring you short and sweet news updates on the global economy and gold market. Today's news discusses US Economy & upcoming Federal Reserve policy meeting.

US Economy

The Delta Variant has prevented the US economy from bouncing back to normal. People are anxious about being around others due to the highly infectious variant. The market is concerned that US performance may not meet expectations, especially in the coming winter months.
CNN Business & Moody Analytics (Back-To-Normal Index) analyses the performance of the US economy at the current moment versus pre-covid. The index has indicated that its performance has dropped to an all-time low since early June.
Some components of the data that indicates restaurant reservations have shown a trend that people are cancelling plans to avoid exposure to the virus.
Consumer behaviour has also changed over the pandemic as people are spending more of their stimulus checks. Many have redirected their expenditure to online platforms such as Amazon to shop for their needs and wants.

Taper News

All eyes are on this week's Federal Reserve policy meeting as we approach the final quarter of the year.
Despite investor expectations that the tapering will begin in 2021, there is still much uncertainty surrounding the Fed's announcement and subsequent reduction in bond purchases. Many expect the announcement to be made in November and taking effect in December.
The Fed's concern with easing bond purchases is cementing in an inflation rate above 2%, which will be costly to reverse while providing no additional benefit to job creation. John Ryding, the chief economic advisor at Brean Capital, said, "The Fed is falling further behind and could be making a major policy error at this point".
David Kelly, the Chief global strategist at JP Morgan Funds, has indicated that a significant announcement will not occur this Wednesday at the Fed policy meeting. He believes that there is "uncertainty about the pandemic, fiscal policy, and economic data". Kelly, similar to other economists, believes that the tapering will start in December 2021.

Gold News

Gold regains momentum after a slow start to a critical day. The price of Gold rose to $ 1,776/ounce early Wednesday.
The market is cautious on the Taper and China's Evergrande news. The concerns saw investors favouring Gold.