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The yellow metal has been lower this week in light of a late-week pickup in the US dollar.
The greenback moved higher in response to comments from Fed Chairman Powell who was peaking at the annual Jackson Hole symposium.
Powell confirmed that the Fed will now target a return to 2% inflation, despite acknowledging that it is counter-intuitive for the Fed to want higher inflation at this stage.
The US dollar has also been helped this week by a raft of positive data. Durable goods and preliminary GDP came in better than expected, lifting expectations that today’s PCE print, a closely watched inflation gauge for the Fed, will also surprise to the upside.
The continued rally in equities prices has also kept gold prices under pressure this week. The S&P500 has broken out to fresh all-time highs, boosted earlier in the week by news that US/China trade talks are back on track.
Following a three-month break during the height of the COVID-19 pandemic, officials from both nations held te...
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