It's like riding a roller coaster! This is the situation faced by gold investors last weekend after the precious metal suddenly made a ‘suicide’ action with a sharp plunge after rising high.
Rising inflationary pressures over the past few weeks have pushed gold prices to a six -week high, and many expect the yellow metal to end above the $ 1,800 per ounce price level at the end of last week’s trading.
However, the latest statement from Federal Reserve (Fed) Chairman Jerome Powell has shattered those hopes and caused gold prices to plummet again.
On Friday, Powell reaffirmed his view that the U.S. central bank is now on track to reduce its monthly bond purchases by the end of the year and is expected to end in mid -2022.
The price of gold, which initially traded higher at $ 1,813 per ounce, plunged sharply back to $ 1,782 per ounce following the statement before being driven back closer to $ 1,800.
In the Asian session, the precious metal traded little changed at $ 1,793 per ounce. Gold futures traded around $ 1,795 an ounce.
In addition, Powell also mentioned that inflation is expected to continue to rise. Still, he predicted inflation would fall back to the central bank’s target of 2%.
