Did the Fed Just Help Gold Finally Hit Bottom?
We hope you’re not too full of Fed-related news because we couldn’t help ourselves but react to their latest comments.
Let’s unpack.
As you know, the relentless rise of Treasury yields has been putting pressure on gold in the first months of 2021.
On Wednesday, the Fed had yet another meeting, and with no surprise, came out of it more dovish than before.
Unsurprisingly, Fed Chairman, Jerome Powell, announced that they will leave interest rates as they are and bet that inflation is not going to accelerate.
By turning a blind eye to growing market fears for higher and sustained inflation, the Fed decided to allow the economy to run red hot and strengthened the outlook for higher inflation, making a turnaround for gold appear more and more likely.
As markets are watching the price of gold slowly reaching back up to the $1,765 an ounce mark, and with many analysts wondering if gold might be nearing bottom these past few weeks, the Fed’s latest unchanging position might turn out to be exactly what gold was waiting for…
Because, do you know what usually comes after hitting bottom?
Keyword: where to sell gold Auckland
