Bank of England decision, Gold falls as Fed ready to hike rates [Video]
|Gold falls, Indices rise as Fed ready to hike rates
Gold prices were trading lower on Thursday, with the S&P 500 and NASDAQ higher, as markets continued to digest yesterday’s Fed announcement.
The Federal Reserve began by confirming it would keep interest rates unchanged, whilst telling markets it would begin to taper its asset purchasing programme, by as earlier as November.
Fed chair Powell stated that this could begin, as long as September's payroll report is “reasonably strong”.
It was also noted that Inflation is now expected to be above the Fed’s target for 4-years, leading to the central bank to potentially hike rates in 2022.
As of writing XAUUSD hit an intraday low of $1,745, with the S&P 500 trading 1.27% higher.
Bank of England lowers growth outlook
It was “Super Thursday '' in the United Kingdom, with the Bank of England holding its own monetary policy meeting.
Like the Fed, the BOE also opted to keep interest rates unchanged, whilst also maintaining its asset purchasing target at £875 billion.
The bank also confirmed that it was revising the country’s growth forecast for the year to 2.1%, down from 2.9%.
Many believe this was a direct result of the Delta variant, which mildly impacted consumer spending in recent months.
GBPUSD surged on the news, climbing to an intraday high of 1.3749, after beginning the day trading at 1.3601.
London’s FTSE 100 closed marginally lower on the news.
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