- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
The yellow metal climbed and the US dollar fell following Fed Chair Jerome Powell’s comments on interest rate hikes in 2019.
Gold inched up on Thursday (November 29) following Federal Reserve Chair Jerome Powell’s remarks which implied that the central bank would go slow on interest rate hikes in 2019.
The yellow metal was given space to climb when the US dollar fell after Powell’s comments. A weaker dollar makes the precious metalcheaper for investors to hold versus other currencies.
“The hint from the Fed that they are closer to ending the current rate hike cycle caught the markets somewhat by surprise. We saw a good lift up in gold price close to the highs we’ve seen over the past few weeks,” said Jonathan Butler, analyst at MUFG Investor Services.
“Treasury yields and dollar dropped back, and that was quite supportive of gold,” he added.
Despite the yellow metal climbing over 1 percent following the intel into the 2019 hikes, gold’s gains were limited as investors recognized that Powell’s statement had a dovish tone, which helped revive risk appetite. World stocks were driven to their highest levels in more than two weeks despite the greenback and bond yields falling.
Powell also said that the central bank’s policy rate is “just below” estimates of a level that does not break nor boost a healthy US economy.
“Gold was revitalized by Powell’s speech and his dovish tone. Despite this move, we are still in a lateral phase. We could have a first positive signal if bullion surpasses US$1,235, paving the way for further rallies,” stated Carlo Alberto De Casa, chief analyst at ActivTrades.
Prior to Powell’s comments, market watchers believed that 2019 would see the same gradual rate hikes from the Federal Reserve that 2018 experienced.
Moving forward, investors will now turn their attention to the release of minutes from the US central bank’s November meeting in order to obtain further clues on the Fed’s monetary tightening path.
Minutes will be released Thursday (November 29) afternoon.
As of 11:24 a.m. EST, gold was up 1.10 percent, trading at US$1,225.90 per ounce.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.
Latest News
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.