Gold Focused On Employment After The FED Decision

Gold focused on employment after the Fed decision. Gold received support from the expectation that the rate hike would not happen soon.

After falling to the lowest level in the last three weeks before the FED meeting, gold prices started to rise again with the expectations that the interest rate hike will not happen soon despite the decrease in asset purchases. Gram gold, on the other hand, moves on a horizontal plane as global gold prices and USD/TL rate balance each other. In his speech on Wednesday, Fed Chairman Jerome Powell said that starting to reduce asset purchases does not mean that interest rates will be increased in the near future. Stating that the reason for high inflation is due to the factors stemming from the pandemic, Powell said that inflation has not softened towards the long-term 2 percent target. In his speech, Powell stated that they want to see an improvement in employment in the USA for the interest rate hike. Powell said, "We will be patient with the rate hike." And shared his prediction that they will reach full employment level in the USA next year. Gold investors will carefully monitor the unemployment benefits, which will be announced today, and the non-farm employment data, which will be announced on Friday, to understand how the interest rate hike calendar will be shaped after the FED's employment emphasis. Starting the new week at around $1,784, an ounce of gold hit $1,794 after the Reserve Bank of Australia ended its bond yield targeting. With the investors focusing on the FED's asset purchase reduction, the ounce of gold, which fell to $ 1,760 before the meeting, rose to $ 1,775 again with messages that interest rate hikes will not start soon. Gram gold started last week around 567 TL. Afterwards, with the rapid decline in the US dollar rate, gram gold, which went down to 557 TL, closed the week at 550 TL. Gram gold has been moving sideways since the beginning of the week as USD/TL and global gold prices balance each other.