Gold prices back near session lows as Powell strikes hawkish tone, saying the central bank will maintain restrictive policy stance for some time – by Neils Christensen (Kitco News – August 26, 2022)

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(Kitco News) – Gold prices have fallen to session lows as Federal Reserve Chair Jerome Powell strikes an expected hawkish tone in his much-anticipated speech at Jackson Hole, Wyoming. In his speech, Powell reiterated that inflation remains the biggest threat to the economy and the central bank is committed to bringing consumer prices back down to its target of 2%.

“Restoring price stability will likely require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy,” he said in his remarks during the central bank symposium.

The gold market continues to hold support above $1,750 an ounce; however, it is struggling to attract new bullish momentum as markets expect to see further rate hikes.

Powell noted that rising interest rates continue to slow growth; he added that those risks are outweighed by inflation.

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