XAUUSD The price of gold is pausing at the start of Friday, consolidating a four-day upward movement to reach a two-week peak of $1,923 achieved on Thursday. The US Dollar (USD) is assuming control due to risk aversion and continuing its previous surge, supported by the renewed power in US Treasury bond yields.
Note
The selling pressure on gold price intensified as Jerome Powell, the chair of the Federal Reserve, delivered a hawkish commentary at the Jackson Hole Symposium. According to Powell, inflation has remained stubbornly high, indicating that there is still a long journey ahead in curbing inflation despite recent positive indicators.
This stance by the Fed Chair has further boosted the US Dollar Index (DXY), with expectations of more interest rate hikes in the future.
Powell's message regarding interest rates was unambiguous - he emphasized that the central bank plans to maintain rates at a restrictive level until they are confident that inflation is sustainably moving towards 2%.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.