Gold Price Forecast: XAU/USD drops below $1,800 on USD strength, despite falling US bond yields
Gold price extended its losses following a more “hawkish” than expected Federal Reserve’s (Fed) decision on Wednesday. Even though the 50 bps rate hike by the Federal Reserve, the subsequent language used by its Chairman Jerome Powell further cemented the case for a higher “terminal” rate. At the time of writing, the XAU/USD is trading at $1,782 a troy ounce. Wall Street is trading with losses after the Fed’s decision. Jerome Powell and Co.’s decision to hike rates but also revise its September projections, lifting the dot plots above the 5% threshold, caught traders off guard, which were expecting a Fed pivot after “just” two months of lower inflation. At his press conference, Jerome Powell said the labor market remains out of balance and that“we have more work to do.” He emphasized that the Fed needs “substantially more evidence of lower inflation” and that the Fed isn’t at a sufficiently restrictive stance yet and still has “some ways to go.”
12/15/2022 9:00:00 AM
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