Fed Chair Powell and Monetary Policy tomorrow - Federal Rese | GOLDFXCC™ - [TRIAL] Channel️

Fed Chair Powell and Monetary Policy tomorrow

- Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole central bankers’ meeting on Friday (tomorrow) will be the key factor in the short-term driving the price action in the gold market.

Important

- If Powell signals the need for aggressive rate hikes then sellers should return to the gold market because rising rates increase the opportunity cost of holding non-yielding bullion. Additionally, higher rates should make the U.S. Dollar a more attractive investment. A stronger dollar is also a negative for gold demand because it makes the metal more expensive to foreign buyers.