Bank of England ruling gold falls as Fed ready to hike rates [Video]
Gold falls, indices rise as Fed ready to hike rates
Gold prices traded lower on Thursday, with the S&P 500 and NASDAQ rising, as markets continued to digest yesterday’s Fed announcement.
The Federal Reserve began by confirming that it would keep interest rates unchanged, while announcing to the markets that it would start cutting its asset purchase program as early as November.
Fed Chairman Powell has said it could start, as long as the September payroll report is “reasonably strong.”
It was also noted that inflation is now expected to be above the Fed’s target for 4 years, which will lead the central bank to potentially raise rates in 2022.
At the time of writing, XAUUSD has hit an intraday low of $ 1,745 with the S&P 500 trading up 1.27%.
Bank of England lowers growth outlook
It was “Super Thursday” in the UK, with the Bank of England holding its own monetary policy meeting.
Like the Fed, the BOE has also chosen to keep interest rates unchanged, while keeping its asset purchase target at £ 875 billion.
The bank also confirmed that it is revising the country’s growth forecast for the year to 2.1%, from 2.9%.
Many believe this is a direct result of the Delta variant, which has affected consumer spending slightly in recent months.
GBPUSD surged on the news, hitting an intraday high of 1.3749, after starting the day at 1.3601.
London’s FTSE 100 closed slightly lower on the news.