Dovish Fed Comments positive for Gold

gold price, gold price live, live gold price

Live Gold Price in Mumbai It’s quite strange that 10 days back the key influential factor that pulled gold prices down was responsible for the rise in gold prices in the past 5 days. Yes rate hike!!!!.

The precious jobs reports brought mixed sentiments for gold traders as there wasn’t really anything in this number which was going to put the brakes or fasten an interest rate hike.

But what played positive for gold was the statement realised by Fed Chairman, Janet Yellen post the data released on Friday.

The surge in Live Gold Price in Mumbai came after a Friday report on consumer prices showed that inflation in June came in flat, a sign that consumer prices had trouble sustaining its upward momentum. A weaker-than-expected reading for June’s retail sales, which fell 0.2%, also signaled weakness. Economists polled by Market Watch had forecast a 0.1% increase. Market participants said the lack of spending from U.S. shoppers made it difficult to envision inflation approaching the Fed’s 2% target.

Gold prices on Friday marked the highest finish of the month and their first weekly rise since early June, as data on retail sales and inflation stoked concerns that the pace of economic growth may not merit lifting U.S. Live Gold Price in Mumbai interest rates again in 2017.

U.S. consumer prices were unchanged in June and retail sales fell for a second straight month, pointing to tame inflation and soft domestic demand that diminished prospects of a third interest rate increase from the Federal Reserve this year.

The U.S. data bolstered expectations that the U.S. Federal Reserve would likely to move slowly to continue raising interest rates in the absence of inflation signs. Some had been expecting another rate hike in 2017, however Fed Chair Janet Yellen’s comments to the U.S. Congress this

Week was more dovish than originally anticipated Live Gold Price in Mumbai.

Activity was muted ahead of a speech by US Federal Reserve Chair Janet Yellen later in the day which could give clues on the Fed’s attitude towards inflation, and on when the US central bank will start reducing its $4.5-trillion balance sheet. That would likely push up bond yields, boosting the opportunity cost of holding bullion, and pushing gold lower.

But, in a testimony to the Congress, Federal Reserve Chairman Janet Yellen had signalled a gradual approach to future rate hikes, which pushed down the dollar and boosted the appeal of the precious metal.

The disappointing U.S. retail sales and inflation data has now seen the odds of another rate hike fall below 50% this year which  has further boosted the appeal of low- and noninterest-bearing assets on a relative basis, hence the  market witnessed  breakdown in [the U.S. dollar/Japanese yen] and breakout in gold.

The latest economic data may be viewed as providing insufficient support for the Fed to lift interest rates at least once more in 2017 and shrink its $4.5 trillion balance sheet—an act that can also serve to lift rates and tighten economic conditions.

The next big thing for traders is the upcoming ECB monetary policy  meeting to be held on July 20 in Frankfurt and that certainly has an ability to bring another episode of taper tantrum.


  • yeezy boost Posted 1st September 2017 2:35 pm

    I precisely desired to thank you so much once again. I do not know the things that I might have sorted out in the absence of those thoughts discussed by you relating to my industry. This has been an absolute traumatic situation in my opinion, nevertheless finding out a new professional mode you resolved that made me to jump for happiness. I am just grateful for your information and thus expect you find out what a great job that you’re doing training most people by way of your blog. Most probably you haven’t come across any of us.

  • yeezys Posted 6th September 2017 12:29 pm

    I and my buddies have already been reading through the great things on your website and then then developed a terrible suspicion I never thanked you for those strategies. These guys ended up certainly very interested to learn all of them and have now truly been enjoying these things. I appreciate you for really being well considerate and then for opting for such high-quality themes most people are really wanting to be aware of. Our honest apologies for not expressing gratitude to you sooner.

Add Comment

Your email address will not be published. Required fields are marked *