This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
Gold prices have ended the week higher as the US dollar extended its bearish move in response to the latest message from the Fed.
Speaking at the June FOMC meeting, Fed Chairman Powell delivered a stark warning to traders.
Powell advised that interest rates will remain on hold in the US until at least June 2022. The Chairman was keen to deliver a very sobering message to the market to dispel any idea that the economic damage caused to the US and global economies from COVID-19 might be easily and quickly resolved.
The warning comes just a few days after a record April NFP number which saw 2.5 million jobs created. Equity markets had been higher in the wake of the release, pulling gold prices lower.
However, Powell’s message and subsequent US weekly jobless claims yesterday have since seen equities prices reversing sharply, creating a strong safe-haven bid in gold.
Gold Still Capped by 1748.80
Despite the rally this week, gold prices remain beneath the 1748.80 level which continues...
To keep reading this article, please navigate to: Orbex Forex Trading Blog.