Gold Steady in $2,900 Area as US Economic Concerns Grow
Gold (XAU/USD) prices moved below the $2,900 level at the start of the week with some selling pressure on Monday (3/10) as markets began to cool ahead of the US trading session. Traders were weighing comments from US President Donald Trump following an interview on Fox News over the weekend. When asked about the US economy, President Trump said that the economy was in a ‘transition’ phase, while markets have floated the idea that the US economy is in a recession scenario.
Meanwhile, Federal Reserve (Fed) Chairman Jerome Powell issued a series of statements on Friday before the Fed’s pause period began. The pause period precedes the actual policy rate decision on March 19, when the expectation is to keep the policy rate steady. Powell said that the central bank does not need to do anything at this point and that the price of keeping its policy rate steady comes at a very small price for the possibility of a policy mistake by preemptively changing rates.
Source: FXStreet