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30 Aug 2021
Gold sees a rise in Asia after Powell Speech
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Gold saw an increase on Monday morning in Asian markets, mostly encouraged by Friday’s speech led by Jerome Powell. The speech impacted treasury yields and the USD. Gold futures went up 0.29% to $1,824 by 9:15 pm GMT.
The Jackson Hole Symposium took place on Friday and remained as one of the most anticipated events of the week. Analysts were looking for clues in the speech for the reduction on tapering and the stimulus.
Jerome Powell indicated in the speech that tapering may begin by the end of the year. However, interest rates are not expected to be raised anytime soon.
Other key points mentioned in the speech included reducing asset purchases this year as the employment market continues to grow and the economy is moving towards recovery after the pandemic.
Powell also said that inflation levels are temporary and should not discourage job growth. The speech led gold traders to assume that interest rates will not be raised in the near future, causing gold prices to go up in Asia markets.