Gold rallies to daily high on short covering, Powell remarks
Gold prices have pushed to double-digit gains in late-morning trading Friday. Short covering by the shorter-term futures traders, after the recent solid price losses, is featured. Also, the yellow metal rallied as Federal Reserve Chairman Jerome Powell said in a panel discussion that developments in the banking sector may mean interest rates may not need to rise as much to meet the Fed’s policy goals. However, other comments Powell made at the panel discussion were not dovish, as he said the FOMC is strongly committed to returning to the 2% annual U.S. inflation goal. A sell off in the U.S. dollar index today is also aiding the precious metals market bulls. June gold last up $16.90 at $1,976.70.
Live 24 hours gold chart [Kitco Inc.]
By
Jim Wyckoff
For Kitco News
www.kitco.com
Tim Moseley