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
Gold sell
Period: 31.10.2026 Expectation: 3000 pips
Gold sell-off targets $4,000
Yesterday at 08:04 AM 14
Period: 30.11.2026 Expectation: 5700 pips
Selling USDJPY down to 150.00
Yesterday at 08:04 AM 12
Period: 30.09.2026 Expectation: 1500 pips
Invest in GBPUSD up to 1.36270
17 September 2026 29
Period: 15.10.2026 Expectation: 1000 pips
Selling SPX down to $7,490
16 September 2026 35
Brent sell
Period: 15.10.2026 Expectation: 800 pips
Brent crude sell-off targets $95.80
16 September 2026 27
Gold sell
Period: 31.10.2026 Expectation: 18000 pips
Go short on gold upon breaking $4,300
15 September 2026 51
Go to forecasts