Gold Hits Two Week High As Fed Maintains Ultra Easy Monetary Policy Stance

Published on Mar 18, 2021 11:23

COMEX Gold stayed supported following a largely expected status quo from the US Federal Reserve. The US Federal Reserve still expects to keep interest rates at near-zero levels through 2023. The Fed maintained the target range for the federal funds rate at zero to 0.25% and reiterated it plans to continue purchasing bonds at a rate of at least $120 billion per month until substantial further progress has been made toward its policy goals.

This kept the US 10 year treasury yield above 1.60% mark and within distance of recent 13 year high. Gold spiked towards two week high of $1750 per ounce, adding around 1% after the US Fed Chairman Jerome Powell stated that there is very likely to be a step up in inflation in next few months. Fed also noted that US core consumer prices are expected to rise by 2% in 2022 and 2.1% in 2023.