He gold went up this Thursday, May 15, favored by the weakness of the dollar, While investors analyze the statements of Jerome Powell and the consumer data of USA. The ingot advanced 1.8% to U $ 3,243.62 The ounce.
“We are seeing that it is rather a rebound of coverage of short for gold. With the weakening of the dollar, it has possibly contributed to the demand,” he said Fawad RazaqzadaMarket Analyst of City Index and Forex.com. The dollar index declined 0.2%, lowering gold for holders of other currencies.
Despite the correction, Gold accumulates a rise close to 25% So far this year and reached a Historical maximum above US $ 3,500 In April. The previous rebound had been fed by fears of a tariff escalation under the government of Donald Trumpthat could shoot inflation or lead to a global recession.
Powell’s statements hit the markets
Jerome Powell said rates of long -term interest will be higher As the “Offer shocks” They suppose a “complex challenge” for the economy and central banks.
“Higher real rates can also reflect the possibility that Inflation is more volatile in the future than in the period between crisis of the 2010. We may be entering a period of more frequent, and potentially more persistent offer shocks, which means a Difficult challenge for the economy and central banks“, has indicated during his speech at the Thomas Laubach Research Conference Organized in Washington.
It should be remembered that in your Last monetary policy meeting held on May 7, The American Central Bank kept the rates without changes, between 4.25%-4.50%, and warned about the risk of stagning. In fact, he made it clear that “the risks of greater unemployment and greater inflation have increased.”
Therefore, and although Powell has not referred to the impact of Donald Trump’s tariffs in his speech this Thursday, the head of the Fed has highlighted on other occasions the probability that the rates are scrubbing growth and promoting inflation.
“Yes ok Our monetary policy rate is currently well above the lower limitin recent decades we have cut the rate at approximately 500 basic points when the economy is in recession. Although being stuck at the lower limit is no longer the base case, it is prudent for the framework to continue to address that risk, “he said.
“A fundamental issue is How to foster a broader understanding of the uncertainty facing the economy in general. In periods with larger, more frequent or more disparate shocks, effective communication requires that we transmit the uncertainty surrounding our understanding of the economy and perspectives. We will examine ways to improve in that dimension as we advance, “Powell concluded.
This adds to the concern among investors for possible disorders in the worldwide supply chain that can cause Donald Trump tariffs.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
