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Gold In 'Not Inflation Hedge' Shocker as China Data Back Yellen, Powell


Wednesday, 6/09/2021 13:53
GOLD PRICES held flat around $1891 per ounce in London trade Wednesday, drifting ahead of tomorrow s US inflation data as Western stock markets slipped and longer-term borrowing costs retreated following mixed inflation figures from China.
 
Factory-gate prices in the world s 2nd largest economy jumped 9% last month from May last year, depths of the first wave of Covid pandemic and lockdowns, while machine-tool orders in neighboring Japan showed a 141% year-on-year jump.
 
But the Consumer Price Index in China slipped 0.2% from April, capping annual inflation at 1.3%, while money-supply growth in Japan slowed hard from 9.2% per year to 7.9% last month.
 
The best forecasters are definitively on Yellen s side, says ....

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RBI: Monetary policy likely to normalise in Q4 - The Economic Times


The Reserve Bank of India’s monetary policy outcome was less about rates and more about the policy language, rate stance, forward guidance and liquidity infusion through the Government Securities Acquisition Programme (GSAP). The stance remained unchanged while the forward guidance continued to be unequivocally dovish.
To nurture its revised state-based forward guidance, the Monetary Policy Committee (MPC) added the word ‘revive’ to acknowledge the scar of the second wave of the Covid-19 pandemic while continuing with its accommodative stance of sustaining growth on a durable basis. Also, the MPC did not go the full length in acknowledging higher inflationary risks, but modestly increased its average inflation forecast for FY22 to 5.1% (from 5%). ....

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