Fed's no near-term rate cuts: bearish for gold and silver
Wednesday (April 17) Asian morning, spot gold basically stable, gold prices are currently located in the vicinity of $2383/ounce; by the impact of Fed Chairman Powell's hawkish remarks.
Tuesday's New York session, $Gold - main 2406(GCmain)$ and $Silver - main 2405(SImain)$ prices briefly appeared to dive, spot gold is close to closing flat, spot silver closed down 2.6%.
Federal Reserve Chairman Jerome Powell said on Tuesday that the recent inflation data suggests that the Fed may need more time to have enough confidence to cut interest rates.
Powell pointed out that since the end of last year, the rapid decline in inflation, the Fed in the fight against inflation lack of more progress, if price pressures continue, the Fed can be in the "necessary long time" to keep interest rates unchanged.
He said at an event, "The recent data clearly does not give us greater confidence, but rather suggests that it may take longer than expected to realize that confidence."
Markets $S&P 500(.SPX)$ $NASDAQ 100(NDX)$ $DJIA(.DJI)$ are in pause mode, waiting for the other shoe to drop on the Israel-Iran conflict.
If the situation escalates, you will see gold rise again. If the Middle East conflict de-escalates, market focus will shift to the Fed.
The Fed is clearly unlikely to cut interest rates anytime soon, which is a negative factor for the gold and silver markets.
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