Gold Doesn't Move With Powell's Policy Stance! - Kakiforex.com - Financial Market Media No. 1 in the World Gold Doesn't Move With Powell's Policy Stance! Gold Doesn't Move With Powell's Policy Stance!
InstaForex

June 23, 2021

Gold Doesn't Move With Powell's Policy Stance!

 The yellow-gold metal trade appeared unimpressed by Federal Reserve (Fed) Chairman Jerome Powell’s statement stating the central bank was in no hurry to raise interest rates.


Although the US dollar depreciated following the statement, gold trading was seen as unaffected.


During the Asian session, the precious metal gold continued to trade hovering around the same price at $ 1,781 per ounce.



This is because, although he admits that the rise in inflation is stronger and more persistent than expected, but it will decline again.


He added that the Fed would not raise rates just because it was worried about rising inflation. The central bank will look at evidence of temporary inflation or other imbalances before making a decision.


This suggests that the US central bank will continue to maintain their current very loose monetary policy implementation until stability in employment and inflation can be achieved.


At last week’s FOMC policy meeting, the Fed had signaled a faster -than -expected interest rate hike in 2023 and the debate over a reduction in bond purchases had begun to resonate following several speeches from Fed policymakers.