Exclusive to Kitco News, technical analyst Gary Wagner provides a daily recap of what happened in the gold market, highlighting important events that captured investors' attention during the U.S. trading session. Wagner's commentary features a mix of fundamental news and technical analysis, noting important support and resistance levels.
The rate hike pause by the Federal Reserve was already factored into market prices; but the hawkish tone almost assures that interest rates will remain elevated not only through the rest of this year but well into 2024 was not. The revision to the Federal Reserve's monetary policy sent shockwaves through the financial markets at large.
The largest shockwave was that the Federal Reserve now intends to only implement two rate cuts next year rather than four. This means the American public and businesses can expect to see the cost of borrowing remain extremely elevated above 5% for the entire upcoming year. This was unexpected and took a day to sink in as seen in the financial markets across the board.
U.S. equities sank to their lowest level in about a month trading sharply lower. The S&P 500 lost 1.6%, the NASDAQ composite dropped by 1.8%, and the Dow Jones industrial average fell by 1.1%. During Chairman Powell's press conference, he stated that inflation appeared to be"well-anchored," and that the fight was not over."The process of getting inflation down to 2% has a long way to go,"
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