Gold Prices Fell After Powell Has Been Nominated The Next Chair of The Federal Reserves
- Trade Magnates Team
- Nov 3, 2017
- 1 min read
Trade Magnates - Gold prices depreciated after on Friday morning as President trump nominated Jerome Powell to be the chair of the Federal Reserve on Thursday while dollar gained strength as a weak jobs report failed to meet investor expectations for a year–end rate. Gold futures fell to 1270$ a troy ounce.
The new Chair, Jerome Powell, who was nominated as a Fed governor in 2012 by former President Barak Obama and confirmed in 2014, is considered dovish. He is likely to follow a similar monetary policy stance as Fed chair Janet Yellen. However, his nomination is to be confirmed by the senates.
Market data on Thursday raised expectation of a possible rate hike in December. Gold prices are sensitive to moves higher in interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion.