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(Kitco News) – Federal Reserve chair Jerome Powell maintained his hawkish bias this week, saying that interest rates will have to remain in restrictive territory for the foreseeable future; however, the gold market remains firmly in neutral territory as uncertainty supports the precious metal.
Some analysts have said that gold has been able to withstand the Fed’s posturing as risks for the global economy grow.
“Consumers are spending the last of their savings and higher interest rates will start to take their toll,” said Ed Moya, senior market analyst at OANDA. “We think it’s only a matter of time before we see a weaker economy, and that will not be good news for the U.S. dollar.”
Heading into the weekend, December gold prices last traded at $1,944.90 an ounce, roughly unchanged from last Friday. Although gold is caught in a tight trading range, it has held firm against major headwinds as the 10-year bond yield pushed to a fresh 16-year higher at 4.5%. At the same time, the U.S. dollar is ending the week at its highest level since November 2022.
Ole Hansen, head of commodity strategy at Saxo Bank, said in his weekly commentary that economic uncertainty continues to support gold as a safe-haven asset.
“We conclude that the breakdown in normal…
