Gold Price News and Forecast: XAU/USD is trading 0.55% higher on Wednesday despite some greenback strength
|Gold Price Analysis: Despite Powell's bombshell gold is still higher on the day
Today has been another bumper session with lots of news. The comments from Fed Chair Powell were the main event. As expected Powell confirmed that the Fed is not looking at negative rates at the moment. He went on to say that the evidence on negative rates is very mixed and there is a concern over them is interrupting intermediation. The futures markets have reduced their bets not negative rates but there is still the suggestion that they will need to reaccess the situation if there is a second wave.
That was not the end of the central bank speak today as ECB's de Guindos said the Eurozone has already reached its lowest level in terms of economic activity. Slightly presumptuous as once again I am not sure he could forecast the second wave of infection and if the virus could mutate to something more serious. He went on today the EU will take up to two years to fully recover and get back to the situation before the current shock.
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Gold spikes to weekly tops and retreats, holds above $1700 mark after Powell’s speech
Gold faded a knee-jerk bullish spike to weekly tops and quickly retreated around $10 in the last hour, albeit has still managed to hold above the $1700 mark.
Following a brief consolidation through the early European session on Wednesday, the safe-haven commodity managed to gain some positive traction and was being supported by fears over the second wave of coronavirus infections.
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