15 December 2022 | Other

Aggressive Fed outlook puts pressure on gold and silver

The Federal Reserve's speech turned out to be much more aggressive than expected. In connection with this, there is a decrease in the prices of gold and silver on Thursday. There is still uncertainty in the precious metals market because of the likely increase in interest rates in the U.S. 

Fed Chair Jerome Powell expects that the U.S. interest rates are likely to peak at higher levels. And this is despite the fact that the increase this time was smaller and amounted to 50 basis points.

The inflation rate is still well above the Fed's 2% target threshold. According to Powell, this is the main reason for higher rates.

The U.S. central bank also announced its readiness to slow down economic growth and the country's labor market in order to fight inflation.

Analysts at ING in their note said that the Fed could soften its policy if it was sure that the inflation rate has really slowed down. And not just for one or two months, when the core inflation rate turned out to be better than the market predicted.

This year's increase in interest rates has been the strongest deterrent to the precious metals markets. This is due to the impact of interest rates on the increase in the opportunity cost of holding an asset.

Company MarketCheese
Period: 12.06.2026 Expectation: 800 pips
GBPUSD is stuck in flat trend amid Middle East uncertainty
Today at 07:06 AM 6
Period: 11.06.2026 Expectation: 1650 pips
Selling S&P 500 with 7,370 in sight on rising likelihood of Fed’s hawkish policy
Yesterday at 11:51 AM 28
Gold buy
Period: 05.06.2026 Expectation: 290 pips
Buying gold with $4,770 in view
Yesterday at 11:13 AM 50
Period: 31.10.2026 Expectation: 1000 pips
Buying Ethereum up to $2,800
Yesterday at 10:59 AM 20
Period: 15.06.2026 Expectation: 600 pips
Invest in SPX as job growth holds steady
Yesterday at 10:59 AM 10
Period: 04.07.2026 Expectation: 2150 pips
Invest in USDJPY up to 162.00
Yesterday at 10:25 AM 21
Go to forecasts