Gold is like a thrilling rollercoaster these days, and it’s all because of Federal Reserve Chair Jerome Powell. Recently, Powell dropped a big surprise at an International Monetary Fund event. He basically said, “We’re not sure if our money plans are enough to control inflation.” This made gold traders gasp.
Gold’s Rollercoaster Journey: Powell’s Surprise Causes Market Stir
Powell hinted that if inflation doesn’t behave, he might raise interest rates. This will make U.S. dollar and bond yields stronger – two things that have been tough on gold. Right now, gold is having its worst week in ages, down almost 3% at $1,939.90 per ounce. Powell’s plan is to stop it from reaching $2,000.
What the Experts Say: Otunuga and Melek Paint a Tough Picture
Experts, like Lukman Otunuga from FXTM and Bart Melek from TD Securities, are saying not-so-happy things about gold. They think the strong U.S. dollar and rising bond yields are like a tough team against gold. The $1945 level is crucial. If gold can’t hold it, it might fall to $1934.
Economic Playground: U.S. Data, Sales Numbers, and a Government Shutdown
The U.S. economic playground, with data, sales numbers, and a possible government shutdown, could be either a new friend or a bully for gold. As the U.S. government tries to get investors with bond auctions, the economic sandbox becomes important for gold’s future adventures.
Stanley’s Surprise Twist: Bond Market Confusion as Gold’s Chance
James Stanley from StoneX Group talks about a surprise twist – confusion in the bond market. The flying yields have been helping gold, but if things get weird, it could be a problem. Bond market confusion might be the surprise that turns gold’s problems into a chance.
Summing It Up: Gold’s Wild Ride Through Powell’s Plan and Economic Fun
In the end, gold is on a wild ride because of Powell’s plans, the strong U.S. dollar, and tricky bond yields. Traders, get ready for surprises, keep an eye on $1945, and be ready for anything. Gold’s journey continues, and in all the ups and downs, it might just show a surprising and golden ending.