Gold rises as rate hike ruled out.
Gold under the strong bullish pressure today after U.S. Federal Reserve Chairman Jerome Powell reassured investors that a rate hike is not on the cards anytime soon, sending the dollar to multi-week lows. Powell said the U.S. job market still had “some ground to cover” before it will be time to pull back support and the Fed was “ways away” from considering rate hikes. After Powell’s comments, the dollar slipped to a one-month low against its rivals, making gold less expensive for holders of other currencies. The gold is also rising as global demand for gold rose in the second quarter to its highest quarterly level in a year, as central banks and investors increased the purchases.
Expect buyers on downward corrections.
Next resistance to watch – 1834.00
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