Daily Gold Market Report

Gold Gains Momentum on Powell’s Balanced Stance and Geopolitical Tensions
Traders See A 70% Chance Of No Rate Hike In December

(USAGOLD – 10/20/2023) In the past week, gold prices have rallied nearly 8% from its recent seven-month lows. Gold is trading at $1978.12 this morning, up $3.66. Silver is trading at $23.11, up 3 cents. Jerome Powell’s remarks yesterday had a nuanced impact on the gold market amid existing Middle East tensions. The Federal Reserve Chair’s comments left open the potential for more rate hikes due to a stronger than expected economy while also acknowledging emerging risks, necessitating cautious moves. This mixed message was not perceived as hawkish by the market, which in turn fueled hopes that the U.S. central bank might pause it’s rate hikes.

USAGOLD Comment: The market’s reaction denotes a complex interplay of geopolitical factors and monetary policy expectations, with Jerome Powell’s cautious stance providing a supportive backdrop for gold prices in the near term amidst an uncertain global landscape.