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: 14.05.2025 Expectation: 1650 pips
Technical and fundamental background supports AUDCAD
07 May 2025 80
Elena_Dorokhina
Elena_Dorokhina

Listed among the best MarketCheese authors
1st in the segment "Currencies"
Period: 08.05.2025 Expectation: 550 pips
EURUSD to drop to 1.13000
07 May 2025 56
Period: 13.05.2025 Expectation: 240 pips
Brent crude price rebound to continue up to 65
07 May 2025 71
Period: 14.05.2025 Expectation: 1000 pips
Buying GBPUSD amid trade talks and weaker dollar with target at 1.344
07 May 2025 36
Period: 12.05.2025 Expectation: 1500 pips
USDJPY rebound fades ahead of Fed meeting
06 May 2025 71
Period: 30.05.2025 Expectation: 975 pips
Natural gas maintains upside potential within megaphone pattern
06 May 2025 76
Go to forecasts