1 December 2022 | Other

Gold rises amid Powell's announcement of a smaller increase in interest rates

After Fed Chair Jerome Powell's forecast of a slowdown in interest rate hikes, which caused a rally in the metals markets, gold prices are rising on Thursday.

The Fed is likely to moderate the pace of rate hikes in the next few months, Jerome Powell stated in his speech in Washington. He also added that this is necessary in order to identify consequences of a sharp increase in rates on the economy this year. 

The Fed Chairman's statements caused a large-scale rally in the metals markets. The likely slowdown in the pace of rate hikes is a clear positive, bringing some relief to the markets.

At the same time, uncertainty about where U.S. interest rates will peak worsens gold's prospects. The final value of the central bank rate depends mainly on U.S. inflation dynamics.

Company MarketCheese
Period: 01.05.2025 Expectation: 1000 pips
GBPUSD to test level of 1.34 again
25 April 2025 55
Brent sell
Period: 01.05.2025 Expectation: 660 pips
Trade uncertainty and excess OPEC+ supply are dragging down Brent
25 April 2025 40
Period: 29.04.2025 Expectation: 600 pips
USDCAD to head towards 1.39400 after rebounding from 1.38200
25 April 2025 35
Period: 02.05.2025 Expectation: 1669 pips
AUDCAD gains on potential easing of trade tensions between US and China
25 April 2025 35
Period: 30.04.2025 Expectation: 12000 pips
ETHUSD set to test upper boundary of downtrend channel
24 April 2025 90
Period: 25.04.2025 Expectation: 500 pips
AUDUSD to fall to 0.63000
24 April 2025 45
Go to forecasts