The next two days could shape the short-term future of the gold market, as US Federal Reserve chairman Jerome Powell is expected to give a few hints on rates.

Gold futures largely traded sideways on the Comex market in the US overnight as markets waited on comments from Powell and the US Fed in coming days.

He’s due to testify to US Congress on monetary outlook over the next two days, with the minutes from the central bank’s meeting also released tomorrow.

Should the Fed move to cut rates in the near-term, it would provide a boost to gold — which has already been on a tear over the last few months.

READ: Why declining rates are good news for gold

Powell’s guidance on interest rate cuts “will set the trend in gold, silver and [the] U.S. dollar Index for the rest of the month,” Chintan Karnani, chief market analyst at Insignia Consultants, was quoted by Dow Jones as saying.

“Gold traders are undecided about keeping prices sustainably above US$1,400, even as bullion endures its steepest moves since 2016,” Han Tan, market analyst at FXTM, said in a note. 

“Safe haven assets are expected to hold less appeal should the Federal Reserve step back from its easing stance.”

While trading of gold futures is one way to get in on the gold game, there are also a swathe of ASX-listed companies who have exposure to it — from exploration companies to producers.

You can read the latest in our rolling coverage of the sector here.


Star Investing has a commercial partnership with some companies mentioned in this article. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.