(Kitco News) There is optimism in the gold space after Federal Reserve Chair Jerome Powell’s nomination testimony triggered a price rally, according to Pepperstone. The key level to watch now is the $1,830 an ounce, with gold bulls now hopeful of what the first quarter could bring for the precious metal.
Gold climbed to new daily highs as Powell testified before the U.S. Senate Committee on Banking, Housing and Urban Affairs. At the time of writing, February Comex gold futures were trading at $1,821.20, up 1.25% on the day.
Even though Powell sounded as hawkish as before, markets got a glimpse of how flexible the Fed is when tightening monetary policy going forward.
“While Powell didn’t really push back on market pricing around expected Fed rate hikes, we’ve certainly seen relief play out across markets,” said Pepperstone’s head of research Chris Weston.