MTECHTIPS;-Gold Prices Drop Amid Powell’s Defence of Fed’s Independence MTECHTIPS-Gold prices dropped on Wednesday in Asia as U.S. Federal Reserve chairman Jerome Powell played down expectations of aggressive rate cut. Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell 0.1% to $1,411.95 a troy ounce by 1:32 AM ET (05:32 GMT). Overnight, Powell said the Fed is studying whether the ongoing Sino-U.S. trade war and slowing economic growth warrants a rate cut. But he emphasized that politics won’t be a consideration in its decision. “The Fed is insulated from short-term political pressures - what is often referred to as our ‘independence,’” Powell added. His remarks led to a selloff in gold, as expectations of lower interest rates make safe-haven assets such as gold, which does not yield interest, more attractive while weighing on the U.S. dollar. Separately, St. Louis Fed President James Bullard told Bloomberg in an interview that he does not think the U.S. economy is bad enough to warrant a 50-basis-point cut in July MTECHTIPS-Apply For 2 Days Free Trails Equity & Commodity Tips WWW.MTECHTIPS.COM 07489294118-119
Published on Jun 26 2019 1:00PM, by MTECHTIPS in Commodity tips| Share This