Gold’s movement ahead of weekend trading intensified after the precious metal showed a surge and plunge in the New York session.
What exactly stimulates the significant fluctuations of this yellow metal?
Gold slipped lower after economic growth data for the fourth quarter and a U.S. jobless claims report showed a better -than -expected reading.
The U.S. economy grew 4.3% versus expectations of 4.1%, while unemployment claims fell to their lowest level in a year. This shows the US economy is on the right path towards recovery
Soon after, gold prices bounced back to a one -week high, hitting $ 1,745 an ounce.
However, the rise did not last long after the statement of Federal Reserve (Fed) Chairman Jerome Powell and pushed gold prices back to plummet lower.
Powell, who spoke on the NPR Morning Edition, signaled the possibility that he would withdraw the asset purchase while also praising the progress on display in the economy.
He said that as progress continues toward the Fed’s targets, they will gradually reduce purchases of government bonds and mortgage securities. This is the first time Powell has mentioned stimulus reduction.
With optimism over a better US recovery, investors began to let go of holdings in gold. In the Asian session, gold traded lower at around $ 1,724 an ounce.
