The hawkish comments from Federal Reserve Chairman Jerome Powell helped push gold prices below $1,800 an ounce after the US central bank said it could raise interest rates “soon.” According to commodity analysts at TD Securities, gold is likely to drop further. cryptocoin.com We are giving the details as…
TD Securities expects the level of $ 1,740 in gold price
On Thursday, the Canada-based bank announced a tactical short position (short) for gold for the next four to six weeks. In the note, commodity analysts said they were shorting gold at $1,821 and expect prices to drop to $1,740 an ounce. After Wednesday’s Federal Reserve monetary policy meeting, markets began pricing in the potential for five rate hikes. At the same time, markets see the potential for a new tightening cycle to lift in March.
At a press conference following the Federal Reserve’s decision, Powell said there was plenty of room to raise interest rates without hurting the job market. The price of gold fell, but did not soon fall as the Fed tried to raise interest rates. “There is plenty of room to raise rates without threatening the labor market,” Powell said. “This is a historically tight labor market in many ways – data is rising at record highs and at the fastest pace.” TDS states that the Fed’s rate hikes are largely priced by the gold market; however, the Federal Reserve’s plan to shrink its balance sheet before the end of the year remains a wildcard, saying:
Markets have been pricing in the March rate hike for some time, which is weighing on the marching signals, but evidence that monetary tightening may be more effective for asset prices suggests that axis will still hold. Despite pace of quantitative tightening, the company should continue to struggle to attract capital against a hawkish Fed
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