Gold Prices Subdued as Powell's Hawkish Remarks Weigh on Market
On Wednesday, gold prices remained subdued as the U.S. dollar gained strength, driven by hawkish remarks from Jerome Powell during a central banking forum hosted by the ECB. By late afternoon trading, the XAU/USD pair was down approximately 0.15% at $1,910, steadily approaching its lowest level since March 15. Moreover, it appeared on track to end the month with a decline of over 2.5%.
During a panel discussion in Sintra, the head of the FOMC emphasized that the current policy stance of the central bank might not be sufficiently restrictive. He highlighted that a majority of Fed officials support raising borrowing costs twice more in 2023. While some traders express skepticism about the possibility of an additional 50 basis points of tightening this year, dismissing this scenario entirely would be premature.
The U.S. economy has shown remarkable resilience thus far, and traders should not underestimate its strength. However, if incoming data continues to exceed expectations, policymakers will be compelled to move forward with their plans to raise interest rates to a more restrictive level in their ongoing efforts to combat persistent inflationary pressures.
XAUUSD
BUY 1905-1907 💯💯
✅ TP1: 1912
✅ TP2: 1917
✅ TP3: 1922
🛑 SL: 1900
During a panel discussion in Sintra, the head of the FOMC emphasized that the current policy stance of the central bank might not be sufficiently restrictive. He highlighted that a majority of Fed officials support raising borrowing costs twice more in 2023. While some traders express skepticism about the possibility of an additional 50 basis points of tightening this year, dismissing this scenario entirely would be premature.
The U.S. economy has shown remarkable resilience thus far, and traders should not underestimate its strength. However, if incoming data continues to exceed expectations, policymakers will be compelled to move forward with their plans to raise interest rates to a more restrictive level in their ongoing efforts to combat persistent inflationary pressures.
XAUUSD
BUY 1905-1907 💯💯 ✅ TP1: 1912
✅ TP2: 1917
✅ TP3: 1922
🛑 SL: 1900
