Advertisements
Home Gold Prices Gold Prices Climb Amid Market Reactions to Powell’s Remarks (July 15)

Gold Prices Climb Amid Market Reactions to Powell’s Remarks (July 15)

by anna

Gold prices saw an uptick on Monday, following a solid three-week streak of gains, although they retreated slightly from daily highs after Federal Reserve Chairman Jerome Powell maintained his current stance without offering clear future guidance. As of Monday, the XAU/USD was trading at $2,422, marking a rise of 0.51%.

The session began with a modest dip in gold prices, influenced by the weekend’s assassination attempt on former President Donald Trump, which heightened his prospects for the upcoming November election and momentarily strengthened the U.S. Dollar. However, concerns eased, allowing the XAU/USD to resume its upward momentum, pushing prices toward a multi-week peak of $2,439.

Advertisements

In a speech at The Economic Club, Powell characterized the U.S. economy as having performed “remarkably well” but noted that the labor market is not as tight as it was during the pandemic. He further stated that the Federal Reserve would not delay rate cuts until inflation hits the 2% target, emphasizing the need for confidence in declining inflation trends.

Advertisements

Following Powell’s comments, U.S. Treasury yields experienced a slight rise, particularly in the mid to long-term segments. The yield on the 10-year Treasury note increased by four basis points, reaching 4.227%.

Advertisements

According to the CME FedWatch Tool, market expectations indicate a 98% likelihood that the Fed will implement a 25-basis point rate cut in September.

Advertisements
Advertisements

You may also like

Lriko logo

Lriko is a gold portal website, the main columns include gold pricespot goldsilver pricespot silvergold futures, nonfarm payroll, gold basics, gold industry news, etc.

© 2023 Copyright  lriko.com