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(Kitco News) All eyes are on the Federal Reserve Chair Jerome Powell’s keynote address on Thursday at the virtual Jackson Hole symposium, according to TD Securities strategists. “We expect the Fed Chair to effectively pre-announce the outcome of the Monetary Policy Framework Review, which suggests the formal adoption of average inflation targeting,” the strategists write. In response, gold and silver could see some new buying interest come into the space. “Precious metals could find support in a change in forward guidance to make clear that the Fed wants inflation to run above the 2% goal as a make-up strategy. While such an announcement by no means would constitute a ground-breaking surprise, the effects of such a policy may not yet be fully priced … The formal announcement could also reinvigorate flows into precious metals, which have slowed substantially following the pullback.” Silver remains TD’s precious metals favorite due to its “clean positioning slate, rising industrial demand, ultimately resilient investment demand, and inventory constraints.”
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