Gold Follows The FED’s Direction

Gold follows the FED's direction. The precious metal is flat in the light of inflation and interest guidance.

Gold is moving sideways, with investors focusing on the details of the FED (US Federal Reserve) meeting on monetary policy and inflation risk. Gram gold is following the rise gold prices. At the Federal Open Market Committee (FOMC) meeting held last month, members of the US Federal Reserve (FED) said they needed more time to reduce their large bond purchases. In the FED's FOMC meeting dated March 6-17, following statements were made; "Participants noted that it will take a little longer to make significant further progress towards achieving the Committee's maximum employment and price stability goals." Guardian Gold Business Development Manager John Feeney said: "We think that the FED will continue its expansionary monetary policy even if the inflation rises above its targets." It also said that some of the participants, towards long-term goals to ensure progress to the extent that the case requires a change in the pace of asset purchases, which stressed that communication must be made well in advance. In the press conference held after the meeting, FED Chairman Jerome Powell stated that the US economy has a "long way" to maximum employment and 2 percent inflation and that "significant additional progress may take some time". While global gold prices have depreciated by 8 percent this year, exchange traded funds based on gold continue to decline. While the ounce of gold is moving horizontally around $ 1,740, gram gold is at the level of 455 TL.     This article has contributions of Bloomberg HT.