Had gained gains after confirmation from Moderna's boss, gold prices plummeted as soon as Powell revealed the potential for accelerated tapering.
Gold prices slumped after investors digested the hawkish tone of the Fed Chair Jerome Powell. Whereas previously, the precious metal strengthened up to one percent in connection with Moderna's confirmation of the effectiveness of the vaccine against the Omicron variant.
In the trading session Tuesday (30/November) night, spot gold prices fell 0.7% to $ 1773.21 per ounce, while gold futures on the Comex in New York fell half a percent to $ 1776.5. At press time, the XAU/USD chart below shows a 0.52% decline to $1774.92.
Hawkish Powell Sentiment Scrapes Gold Gain
In testimony before the Senate Banking Committee tonight, Powell said that the Fed may discuss accelerating tapering at the upcoming FOMC meeting. The statement dampened the demand for gold amid the bearish movement of the Dollar.
"At this point, the economy is very strong and inflationary pressures are very high," said Powell, "Therefore, in my view, it is appropriate to consider finalizing the asset purchase reductions we announced at this November meeting, with the possibility of (implementing) some months earlier (than the original plan)."
Edward Moya from OANDA commented, Powell's hawkish tone did not actually cause a big surprise to the market. The US central bank has been widely expected to accelerate their monetary tightening, including the implementation of interest rate hikes.
In this case, it is the prospect of an increase in interest rates that stymied gold bulls. Nevertheless, Moya is still optimistic that the gold price will still be supported by market concerns about the development of the COVID-19 virus variant.
In the previous trading session, the price of gold had bounced through the high level of $ 1808 after the CEO of Moderna warned that the vaccine that has been widely implemented now will be less effective against the spread of Omicron. However, Carlo Alberto De Casa from Kinesis Money said that investors are actually still evaluating the potential risks of the current Omicron variant.
Post a Comment for "Gold Prices Drop After Hawkish Powell's Statement"