Gold Creeps Higher As Powell Notes, On An Interest-Rate Increase
To increase Gold futures inched higher Tuesday despite the comments indicating the Federal Reserve is willing to be the interest rates next month.
The Fed is attentive to the risks to financial stability caused by the recent correction in the stock market, but “We are in the process of the gradual normalisation of both interest rate policy and our balance sheet,” Fed Chairman Jay Powell, in the text of his solemn swearing-in speech in Washington.
Cleveland Fed President Loretta Mester made similar remarks earlier in the day.
“If the economic conditions develop as expected, we need some further increases in interest rates this year and next year, at a pace similar to last year,” if the Fed raises rates three times, she said in a speech in Dayton, Ohio.
April gold settled at $1,330.40/ounce on the Comex, up $4, or 0.3%, trimming last week’s losses.