"Gold Prices Down As Fed's Powell Stays The Course On Economy Interest Rate Outlook"
From
Kitco (on blogroll at right):
Gold prices remain under pressure as Federal Reserve Chairman Jerome
Powell signals a steady as it goes tone in his prepared testimony before
the U.S. Senate Committee on Banking, Housing, and Urban Affairs.
As expected Powell remained upbeat on the U.S. economy, saying growth has been "solid" so far this year.
"The latest data suggest that economic growth in the second quarter
was considerably stronger than in the first," he said in his prepared
remarks. "The solid pace of growth so far this year is based on several
factors. Robust job gains, rising after-tax incomes, and optimism among
households have lifted consumer spending in recent months."
Also as expected, Powell signaled that the central bank will continue
to gradually raise interest rates as it normalizes its monetary policy
and reduces its balance sheet.
"The FOMC believes that--for now--the best way forward is to keep
gradually raising the federal funds rate. We are aware that, on the one
hand, raising interest rates too slowly may lead to high inflation or
financial market excesses," he said. "On the other hand, if we raise
rates too rapidly, the economy could weaken and inflation could run
persistently below our objective.
The gold market is seeing little reaction to Powell's comments as it
dropped sharply a few minutes before the release of his prepared
testimony. August gold futures last traded at $1,232.70 an ounce, down
0.57% on the day.