Important Disclaimers The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only.
However, gold prices are expected to remain volatile in the near-term as the Fed walks a tightrope, trying to maintain its credibility in fighting inflation while also attempting to engineer a soft landing for the economy. Gold Outlook Remains Positive Despite VolatilityĪlthough there is currently some profit-taking, the overall outlook for gold remains optimistic. dollars, more affordable for foreign buyers. The dollar index has declined by 0.2%, which has made gold, priced in U.S. Gold prices have been supported by a combination of lower yields and a weaker dollar in the wake of the recent Fed meeting and changes in the policy statement language that suggest the central bank may move towards a rate pause. These comments were interpreted as negative by traders.
Powell’s Inflation Concerns Unsettle Tradersĭespite this, during the post-meeting press conference, Powell agreed with the statement, but also mentioned that the Fed still considers inflation too high and it’s too early to conclude that the rate hike cycle is over. However, unlike before, the Fed did not state that it “anticipates” any further rate increases, but rather said that it would monitor incoming data to determine if additional hikes “may be appropriate.” This was seen as a positive sign by traders.
On Wednesday, the Fed increased its benchmark overnight interest rate by 25 basis points. On Wednesday, the SPDR Gold Shares ETF (GLD) settled at $189.09, up $1.57 or +0.84%. Earlier in the session, prices rose to $2,072.19 per ounce and hovered close to an all-time high of $2,072.49 scaled in 2020.
0 kommentar(er)
