Powell Brings Gold Down
Fed Chairman Jerome Powell has started his semi-annual speech which is scheduled to be held in two days. Powell's first speech which was delivered on Tuesday (11/2) night has made many market players believe that there is most likely only one interest rate cut for 2025.
In his speech, Jerome Powell said that the central bank does not need to rush to adjust their interest rates and once again signaled that officials will continue to wait and watch and be patient before lowering interest rates further. Fed policymakers left their interest rates unchanged after their meeting in January and a number of officials have said that they must find some progress in lowering inflation before cutting interest rates.
Powell's much-anticipated speech was previously predicted by market players that the central bank would continue to be in "wait and see" mode which would automatically keep its interest rates unchanged regarding Donald Trump's tariff policy. This will clearly have a big impact on non-interest bearing assets such as gold.
Gold, which had previously set an all-time high of $2942, eventually had to come under pressure before and after the statement, returning to the $2890s. In addition to the pressure from Powell's statement, gold has been in the overbought position for too long using the stochastic and RSI indicators, indicating that in the short term the metal must undergo a correction.
Source: (mrv@Newsmaker)
