Gold up after Fed’s dovish comments
Gold climbed up on Monday in Asia, lifted by US Fed Chairman Jerome Powell’s comment on Friday that put pressure on Treasury yields and the dollar.
Gold futures jumped 0.29% to $1,824 by 9:15 PM ET (1:15 AM GMT).
Powell spoke at the Jackson Hole symposium on Friday but did not specify when the Fed would start tapering its support for the economy and reiterated that the current spike in inflation is temporary.
Instead, Powell remarked that the central bank could start tapering off its support for the economy by the end of the year. The timeline was a bit slower than many expected but was not suggestive of a rush to hike interest rates.
However, Powell also made it clear that he does not want the Central Bank to go after “transitory” inflation levels and discourage job growth in the process.
Gold traders seemed to interpret the comments to mean that the Fed will not be raising rates any time soon.
The yellow metal’s prices bounced back from losses on Friday following Powell’s comments and sustained the gains at the beginning of trade in Asia on Monday.