Gold Advances After Fed Maintains Dovish Line on Rates Yahoo
Bloomberg
Gold Advances After Fed Maintains Dovish Line on Interest Rates
Ranjeetha Pakiam
Wed, March 17, 2021, 9:16 PM·2 min read
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Gold Advances After Fed Maintains Dovish Line on Interest Rates
(Bloomberg) -- Gold rose after the Federal Reserve continued to project near-zero interest rates at least through 2023, bolstering demand for the metal.
Fed Chair Jerome Powell and his colleagues remained dovish at the end of their meeting Wednesday, despite upgrading their U.S. economic outlook and the mounting inflation worries in financial markets. While a growing number of officials saw an earlier start than peers to the withdrawal of ultra-easy monetary policy, Powell stressed this remains a minority view.
The latest messaging by the U.S. central bank may provide some support for bullion, which has been battered by rising bond yields as expectations for a recovery from the pandemic and economic growth fuel inflation concerns. Powell said that the price increases this year are likely to be transient and won’t be seen as progress toward the Fed’s long-term goals. He also said current monetary policy is appropriate and there’s no reason to push back against the surge in Treasury yields.
https://finance.yahoo.com/news/gold-advances-fed-maintains-dovish-011640713.html