Will Fed Chair Jerome Powell Send Gold Prices Higher Or Lower?

There is no denying that these big market moves have presented savvy traders with a series of highly lucrative opportunities to profit from the parabolic rally as well as the huge price reversal that has subsequently followed.

Commodities and the Interest Rate Hike Dilemma

The major market-moving event that traders will be watching closely for clues on Gold’s next move will be comments from Federal Reserve Chairman Jerome Powell, who is scheduled to speak on Wednesday and Thursday.

Earlier in the week, a host of Federal Reserve officials downplayed expectations that the era of rate hikes is nearing its end – setting the stage for Jerome Powell to deliver a hawkish push back against recently found market optimism of a “Fed Pivot”.

Federal Reserve Governor Michelle Bowman said she continues to think the U.S central bank will need to raise interest rates higher to contain inflation.

While, Minneapolis Fed Bank President Neel Kashkari said policymakers may have to do more to bring inflation down to its 2% goal, given the recent spate of resilient economic data.

A similar tone was struck by Chicago Fed President Austan Goolsbee, who said the central bank has made significant inroads in its battle to bring inflation down to its 2% target, but challenges remain and more work still needs to be done.

The message is loud and clear: the majority of Fed officials still continue to see “significant upside risks to inflation”.

But is the Fed bluffing or will policymakers hike interest rates again in December?

The answer to that question may come from Fed Chairman Jerome Powell’s widely anticipated speech on Wednesday and Thursday – which as traders know has the potential to move the markets significantly.

The Expanding List of Risk Factors and the Growing Appeal of Gold as a Safe Haven

As we transition through the final quarter or 2023, the list of known risk factors is expanding and that’s before any unknown unknowns crop up. A growing consensus of traders are convinced that another rate hike is hard to justify in this increasingly uncertain economic and geopolitical environment that we find ourselves in right now.

During times like these, finding a safe place to store money becomes particularly important, which would explain why Gold is everyone’s favourite ‘go-to’ safe-haven. Any substantial pullbacks should be viewed as buying opportunities because prices won’t stay low for long!

Gold Price Forecast

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: