The hawk exit of Fed Chairman Jerome Powell led to the rise in recession pricing in the USA. It provided support under these pricing related to the recession.
As in all asset classes in global markets, the hawkish exit of Fed Chairman Jerome Powell was the main factor shaping the pricing.
After Powell’s statements, the hawk supported safe-haven purchases amid concerns that a Fed could lead to a recession. An ounce of gold reached the level of $ 1,908.
While Fed Chairman Jerome Powell signaled that the Fed could raise interest rates twice in its July and September meetings, there was pressure on the non-interest-yielding gold side.
However, the withdrawal of 10-year bond rates and the fluctuation in the stock markets after the announcements were evaluated as a reflection of the pricing that the Fed might drag the US economy into a recession.
This situation has prepared a ground that supports gold.
Although gold is supported by safe-haven purchases due to recession pricing, it is about 7 percent below its 2023 peak.