To taper or not to taper? When and how much? Does the rate of inflation warrant higher rates? When are we going to stop paying people more to stay home than to go out and work? When will the Delta variant peak? Are we going back to lock downs? Trading gold is not like buying every dip in the S&P. Everybody always says that “the market doesn’t like uncertainty”. Well it seems certain that the Fed is afraid to take away the punch bowl, but at some point, we will have to normalize rates. It would be better for the markets if it were done slowly and incrementally as opposed to sudden and sharp hikes. We have to keep inflation under control. If the Fed lets inflation run away, we will have bigger problems than payer slightly higher rates. We will see how Chairman Powell handles his speech today at the Jackson Hole Symposium. A “virtual” Jackson Hole.

Meanwhile gold trades between $1,810 to $1,780 waiting for some clear direction.