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: 08.07.2025 Expectation: 1500 pips
EURUSD rally faces potential correction toward 1.165
Today at 06:46 AM 29
Period: 09.07.2025 Expectation: 1400 pips
USDCAD declines amid US dollar weakness and improving Canadian trade prospects
Today at 06:07 AM 28
Period: 08.07.2025 Expectation: 3000 pips
Buying Bitcoin during consolidation before July growth wave with 110,000 target
Yesterday at 11:09 AM 52
Period: 07.07.2025 Expectation: 2000 pips
Renewed tensions between Musk and Trump weigh on Tesla shares
Yesterday at 08:33 AM 43
Period: 07.07.2025 Expectation: 1900 pips
SPX may retreat to 5,980 following all-time high
30 June 2025 52
Gold sell
Period: 04.07.2025 Expectation: 5000 pips
Gold's six-month uptrend is under threat as prices test 3250 level
30 June 2025 149
Go to forecasts