Gold Prices Fall as Jerome Powell's Inflation Worries Dampen Easing Expectations
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Gold Tumbles as Powell's Inflation Concerns Dash Easing Bets
M
Moneycontrol•19-03-2026, 01:59
Gold Tumbles as Powell's Inflation Concerns Dash Easing Bets
•Gold declined for a sixth consecutive day, its longest losing streak since late 2024, following Federal Reserve Chair Jerome Powell's remarks on rising inflation.
•Powell indicated that higher energy prices would elevate overall inflation, and emphasized the importance of maintaining mildly restrictive interest rates.
•Traders scaled back expectations for a rate reduction this year, causing bullion to drop 3% as it's priced in US currency and typically thrives in lower-rate environments.
•The Fed kept interest rates unchanged, forecasting one rate cut this year, acknowledging increased uncertainty due to the Middle East conflict.
•Despite recent declines, gold is still up over 10% this year, supported by geopolitical risks and threats to the Fed's independence.
