WASHINGTON (dpa-AFX) - The price of gold showed a significant move to the upside during trading on Friday, largely offsetting the sharp pullback seen over the two previous sessions.
Gold for August delivery surged $29.50 or 1.2 percent to $2.508.40 an ounce after tumbling $32.40 or 1.3 percent on Wednesday and Thursday.
With the strong rebound on the day, the price of gold rose by 0.3 percent for the week, closing high for the fourth consecutive week.
The surge by the price of gold came as the value of the U.S. dollar pulled back sharply as Federal Reserve Chair Jerome Powell's Jackson Hole speech seemingly confirmed expectations that the central bank is prepared to begin lowering interest rates.
'The time has come for policy to adjust,' Powell said at the Jackson Hole Economic Symposium, although he noted the 'timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.'
Powell's determination that it is time for the Fed to begin cutting rates comes as his 'confidence has grown that inflation is on a sustainable path back to 2 percent.'
Fed officials have repeatedly said they need 'greater confidence' inflation is moving sustainably toward the central bank's 2 percent target before they would consider cutting rates.
The remarks by Powell came as recent inflation data has increased confidence the Fed will cut interest rates at its next monetary policy meeting in September.
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