By Gina Lee
Investing.com – Gold was up Monday morning in Asia, continuing to ride a rebound sparked by comments Friday by U.S. Federal Reserve Chairman Jerome Powell that put pressure on Treasury yields and the dollar.
were up 0.29% to $1,824 by 9:15 PM ET (1:15 AM GMT).
Speaking at a symposium at Jackson Hole, Wyoming, on Friday, Powell did not say when the Fed would start tapering down its support for the economy and repeated a stance that a current spike in inflation is temporary.
Powell did suggest that the central bank could start tapering off from the massive levels of support for the economy by the end of the year, a bit slower than many had expected, but did not suggest a rush to raise interest rates.
Powell also said that the employment market had improved and that, if the U.S. economy continued to rebound along its current trajectory it “could be appropriate to start reducing the pace of asset purchases this year.”
But Powell also made it clear that he does not want the Fed to chase inflation levels he called “transitory” and, in so doing, discourage job growth.
“There is little doubt Powell was dovish, relative to market pricing and positioning,” Pepperstone Financial Pty. Head of Research Chris Weston wrote in a note.
Gold traders appeared to take the comments as suggesting that the Fed is not planning to raise rates quickly.
Gold prices rebounded from losses Friday following Powell’s comments and held on to gains at the start of trade in Asia on Monday.
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