4 Nov 2021
Gold Rising Up from a Three-Week Low as Fed Begins Tapering
The Index Today
On Thursday morning in Asia, Gold was up rising back from a three-week low. Investors took in the latest policy decision from a “patient” U.S. Federal Reserve that will begin asset tapering beginning this month.
Gold futures gained 0.68% to $1,775.95 by 11:44 PM ET (3:44 AM GMT). The dollar, which normally moves inversely to gold, edged up on Thursday.
The Fed handed down its decision yesterday on Wednesday, with Fed Chairman Jerome Powell indicating that interest rate hikes will not come anytime soon. However, he added that “we think we can be patient. If a response is called for, we will not hesitate.”
Although the Fed maintained its view that inflation is temporary, the smooth start to the central bank’s asset tapering program gave global shares a boost.
Investors now await the Bank of England (BOE)’s policy decision, due later in the day. BOE is expected to either hike interest rates from an all-time low or to wait for the post-lockdown economy to be ready for such a move.