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Gold Price Clears March High as Dovish Fed Rhetoric Drags on US Yields
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of clients are net short. Long
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2021-04-16 15:00:00
David Song,
Strategist
Gold Price Talking Points
Gold breaks out of the range bound price action from earlier this week as the 10-Year US Treasury yield slips to a fresh monthly low (1.53%), and the break above the March high ($1760) may push bullion towards the February high ($1872) as key reversal appears to be unfolding in April.
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Gold Price Clears March High as Dovish Fed Rhetoric Drags on US Yields
The price of gold appears to have reversed course after carving a double-bottom in March, with the precious metal trading above the 50-Day SMA ($1751) for the first time since February amid the ongoing weakness in longer-dated US Treasury yields.
The Federal Reserve will likely scale back its bond purchases before considering raising interest rates, Chairman Jerome Powell said, hardening expectations on the sequence of its eventual exit from aggressive policy support.
“We will reach the time at which we will taper asset purchases when we’ve made substantial further progress toward our goals from last December, when we announced that guidance,” Powell said Wednesday in a virtual event hosted by the Economic Club of Washington. “That would in all likelihood be before well before the time we consider raising interest rates. We haven’t voted on that order but that is the sense of the guidance.”
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