US Taper to begin soon - Gold gains slight momentum

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 is a highlight of the recent US policy meeting.

Taper News

President of the New York Fed, John Williams, indicates that the US economy is strong enough for tapering to begin. Solid momentum on recovery continues to grow despite the setbacks from the Delta variant.
Williams believes that the economic expansion of 5.5% to 6% this year is sufficient for the Fed to reduce its asset purchasing program.
In last week's policy meeting, the Chairman of the Fed, Powell, signalled an announcement on the tapering process. The Fed has indicated that it will continue its buying of treasuries and securities until it sees "substantial further progress" towards inflation figures of an average of 2% and maximum employment.
Central bank representatives have indicated that although the Fed may soon reduce its bond purchasing program, raising interest rates is a trickier task. Many believe that it will take at least two years before inflation gains momentum to warrant an interest rate hike.

Gold News

Gold has been on a downward trend for September, its lowest at $1,721/ounce. Traders are preparing for the reduction in bond purchases at the end of 2021.