Gold has posted gains in the Friday session. In North American trade, spot gold is trading at $1291.95, up 0.44% on the day. In economic news, durable goods reports were mixed. Core Durable Goods Orders improved to 0.5%, edging above the estimate of 0.4%. However, Durable Goods Orders declined 6.8%, missing the forecast of -6.0%. At the Jackson Hole meeting of central bankers, Janet Yellen has concluded her speech and gold has responded with gains.
Friday is Day 2 of the Jackson Hole Symposium, and featured the star of the show, Federal Reserve Chair Janet Yellen. However, did not take advantage of an ideal opportunity to address US monetary policy, choosing instead to discuss financial reforms. Yellen said that measures put in place in 2007 and 2009 in response to the financial crisis had been effective, adding that future reforms should remain modest. Her comments seemed aimed at a domestic audience, as her message to exercise caution comes at a time when President Trump is looking into wide-ranging reforms in the finance industry. The pro-business Trump has complained that the financial sector is over-regulated and has said that he wants to ease current regulations.
There was some disappointment in the markets as Janet Yellen did not address interest rate policy at her speech in Jackson Hole, and the dollar responded with losses, as gold has moved higher. A December rate hike remains on the table, but the Fed policymakers have sounded lukewarm about another hike in 2017, and the odds of a rate hike in December remain below 50%. One of the principal impediments to rate hike is inflation, which remains at stubbornly low levels. This, despite solid economic growth and a labor market that is close to capacity.
