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Gold jumps by more than $27 to levels of $2,187 per ounce after Powell’s statements
Gold prices jumped by more than $27 to levels of $2,187 per ounce, following the statements of US Federal Reserve Chairman Jerome Powell about interest rates, inflation, and the American economy.
While gold futures prices rose to $2,171 per ounce, an increase of 0.5%. Silver rose by 0.83% to $25.348 per ounce.
The spot price of gold ranged around $2,165.60 per ounce. Gold also settled in US futures at $2,168.60.
“If the Fed signals they will postpone interest rate cuts further than expected, we could see a healthy sell-off, but with the way gold is trading, there is huge demand for the safety in the market right now,” said Bob Haberkorn, chief market strategist at RJO Futures. ".
While gold is a traditional inflation hedge, rising interest rates on other assets discourage investment in non-yielding bullion.
Gold prices fell by approximately 1% last week after consumer and producer prices in the United States rose more than expected in February, reducing hopes for an early cut in interest rates from the US Federal Reserve due to the ongoing risk of inflation.
While traders mostly expect the Fed to keep interest rates unchanged at its policy-making meeting, the focus will be on its outlook afterward.
