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Gold Price Forecast: XAU/USD Jumps as Powell Commentary Deflates US Dollar

Sumary of Gold Price Forecast: XAU/USD Jumps as Powell Commentary Deflates US Dollar:

  • Gold, XAU/USD, Fed, Powell, Technical Forecast – Talking Points March FOMC meeting calmed market fears about premature tightening, sending gold higher US Dollar deflates after Chair Powell assuages markets despite optimistic economic projections Technical bounce may carry momentum forward through week-end after crossing 20-day SMA Gold surged higher against the Greenback after the Federal Reserve March interest rate decision calmed fears about untimely rate tightening…
  • While the Fed dot plot — which tracks Fed officials’ rate projections through 2023 and beyond—saw a handful of members shift their projections up, Chair Powell once again assuaged markets about the central bank accommodative path…
  • Treasury yields and breakeven inflation rates have been drifting higher as the global economic recovery continues to strengthen…
  • One scenario that XAU bulls may be banking on is a Fed that sees any real rise in inflation as transitory and instead focuses entirely on the labor market while sticking to the dovish outlook on rates…
  • Assuming that mindset would stay consistent within the Fed amid an even stronger economic backdrop, it would allow inflation to run beyond the target for some time while the labor market’s slack dissipates….

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