Gold prices got a boost on Friday at 10:17 pm Asia time (GMT+7), jumping after Fed Chair Jerome Powell announced the current direction will be maintained.
Gold jumps after the message by 0.84% to $1808.60.
Silver also got a boost and climbs 1.47% to $23.99.
Fed Chair Powell reinforced the Fed’s current direction by maintaining the current direction. With the unemployment rate still well above the target and the delta variant spreading fast, an early change in policy would do more harm than good.
Still, he sees the economic recovery on a good path and the Fed will do everything it can to return the economy to pre-COVID levels.
However, he leaves the timing for the start of the tapering still open and wants to continue to closely monitor the incoming data to catch the right time for the start of the taper. In addition, Powell again emphasized that the start of the taper does not have to mean a change in interest rate policy.
The loose monetary policy of the Fed will thus remain with us indefinitely. With the message also fell the yields on the U.S. 10-year Treasury.
The news also means that the liquidity in the economy continues to be maintained.
The S&P 500 subsequently rose by 0.74% and the NASDAQ by 0.97%.