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