{"id":25617,"date":"2023-06-21T16:18:53","date_gmt":"2023-06-21T20:18:53","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/commodities\/gold-hits-3-month-low-as-powell-suggests-more-hikes-then-comes-roaring-back\/"},"modified":"2023-06-21T16:18:54","modified_gmt":"2023-06-21T20:18:54","slug":"gold-hits-3-month-low-as-powell-suggests-more-hikes-then-comes-roaring-back","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=25617","title":{"rendered":"Gold hits 3-month low as Powell suggests more hikes, then comes roaring back"},"content":{"rendered":"
\n

Investing.com — Gold traders heard out Jay Powell, sending the market to 3-month lows as he spoke. When he finished, they bought back most of what they had sold, an indication perhaps that the Fed chair\u2019s hawkish script could not shock markets anymore than they were prepared for.<\/p>\n

on New York\u2019s Comex settled at $1,933.30 an ounce, down just $2.20, or 0.1%, on the day. Earlier, it fell to $1,929.75 \u2014 its lowest since mid-March.<\/p>\n

The , which reflects physical trades in bullion and is more closely followed than futures by some traders, was at $1,934.82 by 14:10 ET (18:10 GMT), down $1.53, or 0.08% on the day. It tumbled to a three-month low of $1,919.44 earlier.<\/p>\n

Notwithstanding Wednesday\u2019s comeback, some analysts predicted further weakness in gold as the Fed stayed on the path of higher rates.<\/p>\n

\u201cGold has broadly traded between $1,940-$1,980 over the last month, very briefly moving outside of this range on a few occasions,\u201d said Craig Erlam, analyst at online trading platform OANDA. \u201cTraders will be on high alert for a more substantial breakout to the downside.\u201d<\/p>\n

Powell stays hawkish on rates; Gold market takes it in stride<\/h2>\n

Gold tumbled as Powell began his biennial address to Congress, sticking to the hawkish spiel he adopted at the Fed\u2019s post-rate news conference from June 14, where the central bank paused on its more than year-long monetary tightening.<\/p>\n

But as markets realized that the speech was more like old wine in a new bottle, the which had been rallying on Powell’s words, lost its strength. Gold, conversely, came back from its dizzying drop, recovering almost everything it had lost.<\/p>\n

For context, Powell said nearly all policy-makers at the central bank think there should be more rate hikes to curb inflation. That was a sign that the June pause in the Fed\u2019s year-long campaign of monetary tightening was just that \u2014 a pause.<\/p>\n

The Fed\u2019s next decision on rates is scheduled on July 26, with many economists already the central bank will add another quarter percentage point to rates, bringing them to a peak of 5.5% in a bid to further tame inflation.<\/p>\n

“Inflation has moderated somewhat since the middle of last year,” Powell said, noting that it also “has a long way to go” in meeting the central bank\u2019s cherished target.<\/p>\n

Inflation continues to stay above Fed\u2019s accepted norm<\/h2>\n

The , the broadest gauge of U.S. inflation, grew by 4% in the year to May, expanding at its slowest pace in more than two years. The Index, the Fed\u2019s preferred inflation gauge, meanwhile, grew by 4.4% in the year to April. Both are, however, at least twice above the Fed\u2019s 2% target for annual inflation.<\/p>\n

The central bank, in response, has raised rates by 5% since the end of COVID-19 outbreak in March 2020.<\/p>\n

Powell\u2019s comments came in the wake of Tuesday\u2019s data showing groundbreaking U.S. single-family home-building projects, up their most in more than three decades in May. Permits for future construction also climbed, suggesting that the housing market was turning a corner despite getting clobbered by Fed\u2019s rate hikes.<\/p>\n

Mark Luschini, chief investment strategist at Janney Montgomery Scott, said the bullish housing starts may complicate the “formula around what the Federal Reserve is going to have to do in order to tame inflation”.<\/p>\n

Powell acknowledged those thoughts in his speech.<\/p>\n

\u201cIt will take time, however, for the full effects of monetary restraint to be realized, especially on inflation,\u201d he said, pointing to a \u201ctight\u201d labor market where demand \u201cstill substantially exceeds the supply of available workers\u201d.<\/p>\n

The labor market is the juggernaut of the U.S. economy, adding hundreds of thousands of jobs a month over the past three years after initially losing 20 million to the COVID-19 pandemic.<\/p>\n

While policy-makers the world over typically celebrate on seeing good jobs numbers, the Fed is in a different predicament. The central bank wishes to see an easing of conditions that are a little \u201ctoo good\u201d now for the economy\u2019s own good \u2014 in this case, unemployment at more than 50-year lows and average monthly wages that have grown without stop since March 2021.<\/p>\n

Such job security and earnings have cushioned many Americans from the worst price pressures since the 1980s and encouraged them to continue spending, further feeding inflation.<\/p>\n

The Fed has a mandate of ensuring \u201cmaximum employment\u201d through a jobless rate of 4% or below, and keeping inflation \u201cmanageable\u201d. The last was a task easily achieved before the COVID-19 breakout, when prices expanded less than 2% a year. The pandemic and the trillions of dollars of relief spending by the government, however, triggered runaway inflation since mid-2021.<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Investing.com — Gold traders heard out Jay Powell, sending the market to 3-month lows as he spoke. When he finished, they bought back most of what they had sold, an indication perhaps that the Fed chair\u2019s hawkish script could not shock markets anymore than they were prepared for. on New York\u2019s Comex settled at $1,933.30 […]<\/p>\n","protected":false},"author":1,"featured_media":3495,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[242],"tags":[83],"class_list":["post-25617","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-commodities","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nGold hits 3-month low as Powell suggests more hikes, then comes roaring back | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Investing.com -- Gold traders heard out Jay Powell, sending the market to 3-month lows as he spoke. When he finished, they bought back most of what they\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=25617\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gold hits 3-month low as Powell suggests more hikes, then comes roaring back | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Investing.com -- Gold traders heard out Jay Powell, sending the market to 3-month lows as he spoke. When he finished, they bought back most of what they\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=25617\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-21T20:18:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-21T20:18:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/LYNXMPEE5R1AR-ORUBS_L.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"728\" \/>\n\t<meta property=\"og:image:height\" content=\"485\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=25617#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=25617\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Gold hits 3-month low as Powell suggests more hikes, then comes roaring back\",\"datePublished\":\"2023-06-21T20:18:53+00:00\",\"dateModified\":\"2023-06-21T20:18:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=25617\"},\"wordCount\":780,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Commodities\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=25617#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=25617\",\"url\":\"https:\/\/ifintechworld.com\/?p=25617\",\"name\":\"Gold hits 3-month low as Powell suggests more hikes, then comes roaring back | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-06-21T20:18:53+00:00\",\"dateModified\":\"2023-06-21T20:18:54+00:00\",\"description\":\"Investing.com -- Gold traders heard out Jay Powell, sending the market to 3-month lows as he spoke. When he finished, they bought back most of what they\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=25617#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=25617\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=25617#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Gold hits 3-month low as Powell suggests more hikes, then comes roaring back\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Gold hits 3-month low as Powell suggests more hikes, then comes roaring back | iFintechWorld","description":"Investing.com -- Gold traders heard out Jay Powell, sending the market to 3-month lows as he spoke. When he finished, they bought back most of what they","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=25617","og_locale":"en_US","og_type":"article","og_title":"Gold hits 3-month low as Powell suggests more hikes, then comes roaring back | iFintechWorld","og_description":"Investing.com -- Gold traders heard out Jay Powell, sending the market to 3-month lows as he spoke. When he finished, they bought back most of what they","og_url":"https:\/\/ifintechworld.com\/?p=25617","og_site_name":"iFintechWorld","article_published_time":"2023-06-21T20:18:53+00:00","article_modified_time":"2023-06-21T20:18:54+00:00","og_image":[{"width":728,"height":485,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/LYNXMPEE5R1AR-ORUBS_L.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=25617#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=25617"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Gold hits 3-month low as Powell suggests more hikes, then comes roaring back","datePublished":"2023-06-21T20:18:53+00:00","dateModified":"2023-06-21T20:18:54+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=25617"},"wordCount":780,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Commodities"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=25617#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=25617","url":"https:\/\/ifintechworld.com\/?p=25617","name":"Gold hits 3-month low as Powell suggests more hikes, then comes roaring back | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-06-21T20:18:53+00:00","dateModified":"2023-06-21T20:18:54+00:00","description":"Investing.com -- Gold traders heard out Jay Powell, sending the market to 3-month lows as he spoke. When he finished, they bought back most of what they","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=25617#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=25617"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=25617#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Gold hits 3-month low as Powell suggests more hikes, then comes roaring back"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/25617","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25617"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/25617\/revisions"}],"predecessor-version":[{"id":25618,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/25617\/revisions\/25618"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/3495"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}