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Gold Sells Off As Fed Chair Powell Upbeat On U.S. Economy; Downplays Inflation Concerns

Jim Wyckoff

Kitco News

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Live 24 hours gold chart [Kitco Inc.]

(Kitco News) - Gold prices are selling off and have hit daily lows in afternoon dealings Wednesday. The yellow metal is feeling pressure as Federal Reserve Chairman Jerome Powell is holding his post-FOMC press conference and is sounding positive on the U.S. economic outlook. On the inflation outlook, Powell somewhat alleviated trader concerns regarding low inflation, for which some FOMC members did express concern in the FOMC statement, when he said the present low inflation could be due to "transitory" factors. That statement may have pushed the U.S. dollar index higher and taken some of the dovish tone out of the reading by traders of the FOMC statement. June gold was last down $6.30 an ounce at $1,279.60.

By Jim Wyckoff

For Kitco News

Contact jwyckoff@kitco.com
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