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Gold Posting Solid Gains As U.S. Dollar Index Sells Off Following Fed Chair Speech

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(Kitco News) - Gold prices are solidly higher, near their daily highs and poised to produce a technically bullish weekly high close in afternoon trading Friday. The U.S. dollar index is solidly lower following comments from Federal Reserve Chairman Jerome Powell in Jackson Hole, Wyoming this morning. The Fed is not seeing risks of the U.S. economy overheating or of inflation accelerating above its target, Powell said. He defended the central bank's gradual approach to lifting interest rates and said the Fed is attempting to navigate between twin risks: moving too quickly and needlessly shortening the economic expansion, and conversely lifting rates too slowly and risking a "destabilizing overheating." He said he sees the current path of gradually raising interest rates as "the FOMC's approach to taking seriously both of these risks.... While inflation has recently moved up near 2%, we have seen no clear sign of an acceleration above 2%, and there does not seem to be an elevated risk of overheating." There are mixed ideas on whether Powell's comments were deemed hawkish on U.S. monetary policy. Nonetheless, the U.S. dollar index is trading near its daily low. December gold was last up $19.70 an ounce at $1,213.60.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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