Because of the Fed, Gold Fails to Shine!

thecekodok

 Gold returned to stability after recording a decline earlier in the week driven down by hawkish statements from the Federal Reserve (Fed) policy makers.


The Asian session saw gold trade slightly higher at $1,746 an ounce from the previous session's lower drop.


The yellow metal initially surged to a one-week high in the European session (Monday), gaining some support as a safe-haven following the Covid-19 uncertainty in China.



Massive protests erupted in several major cities calling for President Xi Jinping to step down from his post over his failure to control Covid-19.


However, the price of gold declined again following the rise of the US dollar again, which was driven by the statement of the St Louis Fed President, James Bullard, who said the central bank should continue raising rates until 2023.


Additionally, New York Fed President John Williams said inflation is still high and it will take time to come down, stressing that the central bank needs to do more in reducing price pressures.


Investors' attention is now focused on Chairman Jerome Powell's speech on Thursday which is expected to give an indication of the next direction of the Fed's monetary policy.

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