Although jobless claims may have dipped, economic recovery is far from guaranteed says the Federal Reserve. Remarks made by vice chairman Richard Clarida earlier this week further confirm that favourable policy is here to stay. Speaking on Wednesday, Clarida’s comments heavily favour gold as he indicated that looser policy action will continue.
He said, “The near-term outlook for the labor market appears to be more uncertain. Notwithstanding the recent flow of encouraging macroeconomic data, the economy remains a long way from our goals. It is likely to take some time for substantial further progress to be achieved.”