Powell's dove speaking puts pressure on the US dollar Gold has risen to a high in nearly three months

Powell's dove speaking puts pressure on the US dollar

Gold has risen to a high in nearly three months

On Thursday (October 19th), as Federal Reserve Chairman Jerome Powell reiterated the position that interest rates must remain high for a longer period of time and lacked immediate support for November rates, the US dollar fell and the gold market continued to trade near intraday highs. Due to market participants weighing the prospects of the agreement between the United States and Venezuela, oil performed poorly in the European session. However, after Powell hinted at not raising interest rates in his speech, the US dollar fell and oil prices rose accordingly.

Federal Reserve Chairman Powell stated on Thursday that the strong performance of the US economy and the continued tension in the labor market may require further tightening of borrowing conditions to control inflation. Rising yields will help further tighten financial conditions, which may “to some extent” reduce the need for further interest rate hikes by the Federal Reserve.