Powell says the Fed is prepared to increase the pace of rate hikes if needed.
US Dollar jumps amid growing expectations of a larger rate hike from the Fed.
XAU/USD to remain under pressure while under $1,820/oz.
Gold price accelerated to the downside following the release of Fed Chair Powell's remarks. XAU/USD bottomed at $1,815, the lowest level in a week. It is falling almost $30 on Tuesday, the worst day in a month.
US Dollar jumps on Powell
Federal Reserve Chairman Jerome Powell mentioned in prepared remarks that strong economic data will likely lead to higher interest rates than previously thought, in order to curb inflation.
The speech was seen as hawkish by market participants. The odds of a 50 basis points rate hike jumped. According to interest-rate futures tracked by CME Group, market-implied probabilities of a 50 bps increase at the March FOMC meeting rose from nearly 30% to 50%.
Jerome Powell Live: Fed Chair delivers hawkish testimony in US Senate
US Treasury bonds collapsed. The US 10-year yield rose from nearly 3.94% to above 4% and then pulled back; the 2-year yield hit at 4.97%, the highest level since 2008.
Gold prices extended the decline even as US yields moved off lows, affected by a stronger US Dollar and risk aversion. Silver is losing 4%, trading at $20.19, the lowest level in four months.
면책 조항: 본 게시글에 표현된 견해는 전적으로 작성자의 견해이며 Followme의 공식 입장을 대변하지 않습니다. Followme는 제공된 정보의 정확성, 완전성 또는 신뢰성에 대해 책임을 지지 않으며, 서면으로 명시적으로 언급되지 않는 한 해당 내용을 기반으로 취해진 어떠한 조치에 대해서도 책임을 지지 않습니다.
더 오래된 의견은 없습니다. 소파를 가장 먼저 잡으십시오.