The FED Pushed Gold Prices $50 Higher in 2 Days

The FED’s dovish pivot triggered a metal prices rally with gold and silver traded at $2,054 and $24.505 respectively. Market participants felt quite optimistic.

The Federal Reserve officials decided to keep the current interest rate. What’s more, they promised to steer clear of the hawkish rhetoric to proceed with tightening monetary policy. Instead, they predict loosening policy and interest rate cuts in 2024.

In simpler words, we might see the implementation of a more accommodative financial framework in 2024. Meanwhile, the FOMC tries to be very accurate when moving forward. There is still a high risk of imbalance in case of under/over tightening.

The FED’s dramatic pivot from what most investors expected, resulted in rapid gold and silver price gains. The yellow metal rallied by $50 in just 2 days. The most active gold futures contracts were traded at around $2,051 per ounce on Thursday. The weakening dollar is only a partial reason for such a rally.

As for silver futures, the rise exceeded 6%. The March contract is currently traded at around $24.38 ½, which is $1,31 higher compared to the latest opening price. The greenback index dropped from 103.83 (the opening price on Wednesday) to 101.96.

On the one hand, the weakling USD played an important role in the gold and silver price strengthening. However, it had only a partial effect. Market participants were bidding on silver and gold, which actually was the main reason for such a dramatic rise the markets are witnessing right now.

May the trading luck be with you!