Gold soars 2% after Powell speech, Trump tweets

Aug 23 17:08 2019 Print This Article

Gold surged 2% on Friday as investors interpreted U.S. Federal Reserve Chair Jerome Powell’s speech as leaning towards a dovish monetary policy stance and President Donald Trump’s latest comments exacerbated trade tensions with China.

Spot gold rose 1.9% at $1,527.20 an ounce, shaking off slight headwinds ahead of the Fed Chair’s speech.

Prices earlier rose to $1,528.50, the highest since Aug. 13, when it had scaled a six-year peak of $1,534.31.

U.S. gold futures were up 1.9% to $1,536.90.

“The fact that he (Powell) said that they (the Fed) will act appropriately to sustain expansion is pretty bullish for gold. The two primary tools they have are quantitative easing (QE) or lower rates – both those tools will cause gold to go higher,” said Bob Haberkorn, senior market strategist at RJO Futures.

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