By Brijesh Patel (Reuters) - Gold pared initial losses and held steady on Tuesday, closely tracking the dollar as investors digested comments from U.S. Federal Reserve Chairman Jerome Powell, who said the economic recovery was uneven and far from complete. Spot gold was steady at $1,809.16 an ounce by 10:49 a.m. ET (1549 GMT), after dropping as much as 0.7% in the session. U.S. gold futures were little changed at $1,810. Powell said it will be some time before the Fed considers changing policies it adopted to help the economy get back to full employment. Markets were in a risk off mood this morning with stocks under notable pressure. That caution and a stronger USD saw gold and especially PGMs (Platinum Group Metals) expand trade lower, said Tai Wong, a trader at investment bank BMO in New York.
Following are prepared remarks delivered by Federal Reserve Chair Jerome Powell before the Senate Banking Committee on Tuesday as part of his semi-annual Monetary Policy Report to the Congress.
Beware soaring bond yields, but don’t pull the trigger just yet
As countries navigate the minefield of economic reopening, they have the makings of a new taper tantrum on their hands
This article is an extract from The Telegraph’s
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It is too soon to panic over the bond market massacre. The spike in global borrowing costs since January takes us back to pre-Covid levels. It is not a macroeconomic tightening shock.
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Mark the calendar! June 16 could bring either a sucker punch or knockout for the equity bulls
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Mark the calendar! June 16 could bring either a sucker punch or knockout for the equity bullsBy
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Economists say if investors read Fed’s indication to lower bond purchases as a sign of protecting bonds from the vagaries of inflation, then the impact will be lesser.
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Emerging market equities, which have benefitted from the easy monetary policy of the US Federal Reserve to an extent, will bear the brunt, with the expected maximum drawdown of around 15%.
By Brijesh Patel (Reuters) - Gold edged lower in choppy trade on Tuesday as the dollar recovered ground lost in the immediate wake of comments from U.S. Federal Reserve Chairman Jerome Powell, who said the economic recovery was uneven and far from complete. Spot gold was down 0.3% at $1,803.62 an ounce by 2:10 p.m. EST (1910 GMT), after briefly moving into positive territory as the dollar dipped following Powell s comments. U.S. gold futures settled down 0.1% at $1,805.90. Powell said it will be some time before the Fed considers changing policies it adopted to help the economy get back to full employment and he does not expect inflation to rise to troubling levels.