Gold Edges Lower as Fed Sounds More Optimistic About the State of the US Economy

Gold prices weakened after the Fed sounded more upbeat about the health of the US economy, but have started to recover and edge higher once again early on Thursday. At the time of writing, GOLD is trading at a little above $1,464.

At his congressional testimony, Fed Chair Jerome Powell came down hard against the possibility of interest rates falling into negative territory as Trump repeatedly calls for. According to Powell, the US economy is in a good place and does not require negative rates to support its growth for now.

The hawkish comments from Powell helped strengthen the US dollar and took off some of the appeal of gold. However, gold prices remain supported on the trade war sentiment after reports suggested hiccups in trade negotiations over the issue of farm purchases.

Adding to trade tensions, Trump once again brought up his threat of imposing higher tariffs on Chinese imports if both sides are unable to come to an agreement soon. The next round of tariffs Trump has threatened could make mobile phones, laptops and toys more expensive for American consumers.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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