{"id":204715,"date":"2021-03-17T22:05:00","date_gmt":"2021-03-17T19:05:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/why-gold-rallied-after-the-fed-news\/"},"modified":"2021-03-17T22:05:00","modified_gmt":"2021-03-17T19:05:00","slug":"why-gold-rallied-after-the-fed-news","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/why-gold-rallied-after-the-fed-news\/","title":{"rendered":"#\n  Why gold rallied after the Fed news"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a340c93de846\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a340c93de846\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/why-gold-rallied-after-the-fed-news\/#Myra_P_Saefong\" >Myra P. Saefong<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Why gold rallied after the Fed <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a><br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000202970\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Gold futures touched their highest intraday level in more than two weeks late Wednesday afternoon, as prices reacted to the U.S. Federal Reserve\u2019s decision to keep its benchmark interest rate unchanged near zero, likely for the next two years. <\/p>\n<p> Inflation is likely a key worry for investors, analysts said, though the Fed said Wednesday that it will tolerate inflation slightly above target to make up for the years inflation has been below 2%. Gold is often used as a hedge against inflation.<\/p>\n<div class=\"paywall\">\n       In electronic trading late Wednesday afternoon, April gold was at $1,747.60 an ounce, after touching a high at $1,750.60, the highest intraday level for a most-active contract since March 1, FactSet data show. The contract had lost $3.80, or 0.2%, to settle at $1,727.10 on Wednesday, before the Fed news.<\/p>\n<p>The central bank said it didn\u2019t think it would raise interest rates until the end of 2023, even amid signs of stronger economic growth and higher inflation. <\/p>\n<p>The Fed raised its forecast on GDP growth this year to a 6.5% annualized rate, from 4.2%. It expects inflation to slow to 2% in 2022 before picking up slightly to 2.1% in 2023.<\/p>\n<p>Read the blog: Fed faces communication challenge as doubts mount about its easy policy stance<\/p>\n<p>What\u2019s interesting is that the Fed officials \u201cmade no mention of recent rises in yields, nor any effort to combat those movements,\u201d in the statement released Wednesday, said Jason Teed, co-portfolio manager of the Gold Bullion Strategy Fund<br \/>\n        QGLDX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202310791\/realtime\" class=\"positive\">+0.09%<\/bg-quote><span>.<\/span><br \/>\n       While they <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear to be \u201cacknowledging that some economic indicators have improved, it looks as though their current policy will remain for the time-being until a stronger recovery is realized.\u201d<\/p>\n<p>\u201cWe may anticipate more of the same recent action in the bond markets,\u201d though despite longer-term yields rising on the news, gold prices jumped higher im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely after Wednesday\u2019s Fed announcement and the dollar fell, \u201cindicating perhaps that inflation may once again be a concern for the markets,\u201d said Teed, who is also director of research for asset manager Flexible Plan Investments. <\/p>\n<p>Following the Fed news, the dollar weakened, with the ICE U.S. Dollar Index<br \/>\n        DXY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598269\/delayed\" class=\"negative\">-0.50%<\/bg-quote><br \/>\n       down 0.4% at 91.472 late Wednesday afternoon. The 10-year Treasury note yield  was up 1.2 basis points at $1.628%, though below the day\u2019s high above 1.68%, which was the highest since January 2020.<\/p>\n<p>\u201cThe rise in longer-term Treasury rates has mainly been powered by increased inflation expectations and not by a significant rise in real rates,\u201d which is supportive of gold prices, said Jeff Klearman, portfolio manager at GraniteShares, which offers the GraniteShares Gold Trust<br \/>\n        BAR,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208448147\/composite\" class=\"positive\">+0.70%<\/bg-quote><span>,<\/span><br \/>\n       adding that real yields are still \u201csignificantly negative,\u201d so there\u2019s no opportunity cost to holding gold. That\u2019s supportive for the precious metal\u2019s prices. <\/p>\n<p><strong>Read:<\/strong> Gold settles lower, then climbs after the Fed policy decision<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Myra P. Saefong\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Myra_P_Saefong\"><\/span>Myra P. Saefong<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D318DA339AC0%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Why gold rallied after the Fed news &#8221; Gold futures touched their highest intraday level in more than two weeks late Wednesday afternoon, as prices reacted to the U.S. Federal Reserve\u2019s decision to keep its benchmark interest rate unchanged near zero, likely for the next two years. Inflation is likely a key worry for&#8230;<\/p>\n","protected":false},"author":1,"featured_media":204716,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-204715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/204715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=204715"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/204715\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/204716"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=204715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=204715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=204715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}