It is speculated that the next head of the US Federal Reserve System will not be flexible about the short-term reference exchange rate being “inclined to higher interest rates,” sources said.
And this, for the time being in the commodity markets, would be affecting the value quality shelter of the gold ingot.
During this session, the London Bullion Market Association (LBMA) closed the operation at $1,284.75 per troy ounce of fine, 1.42% less compared to the closing price of previous sessions. Since the end of last month and according to quotes from the LBMA, the gold is going back from the gain recorded in September.
On the other side of the Atlantic, in the US merchandise market, “Spot gold was down 0.47% at $1,287.9 an ounce while US gold future contracts for delivery in December were down 1, 0% to $1,290 an ounce,” according to a source.
In the same stock exchange market of fine and basic metals and at the time mentioned, “Palladium added 1.17% to $983.9 an ounce. Silver was down 0.67% at $17.07 an ounce and platinum was down 0.2% at $926.6 an ounce,” according to a Reuters dispatch.
According to a Bloomberg report, “US President Donald Trump’s favorite candidate for the presidency of the central bank would be John Taylor, known for advocating higher interest rates,” the statement said.
“Everything indicates that he will follow the Yellen style. But what we do not know for sure is whether it will be a Neo-Keynesian projection like Yellen, and that has made analysts nervous because they expect reforms in the American economy that promote consumption, employment, and prices; and with that, the increase in economic activity,” said an analyst at a trading desk in a Lima bank that asked to be kept anonymous.
“If Taylor is prone to higher rates, then his concern is inflation,” he added.
Trump shuffles candidates who could replace Yellen: financier Kevin Warsh, FED director Jerome Powell and economist John Taylor of Stanford University.
US President Donald Trump will meet with FED chief Janet Yellen this week as he told the media to discuss a possible renewal of her appointment as head of the US central bank.
According to The Wall Street Journal, the mandate of the Neo-Keynesian economist ends in February next year. Known as “the dove” by the US stock market, traders, and Wall Street analysts, Yellen, 71, who was named by Obama as president of FED in 2014, was targeted by Trump when he was candidate “for keeping interest rates low to support the Democrats,” so the meeting is expected to have defnite results.