Gold Rewards Bulls in January as Fed’s Message Wounds Dollar (Gold Vol Remains Subdued)

The Federal Reserve’s “maybe we will, maybe we won’t” regarding further shrinking of its balance sheet coupled with keeping its target rate at 2.50% was celebrated by equity investors … and gold investors (including SPDR Gold Shares).

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(Bloomberg) — Gold is poised to close out January with a fourth straight monthly gain after the Federal Reserve signaled it’s done raising interest rates for a while, hurting the dollar, and as investors sought a haven against slowing growth and U.S.-China trade disputes.

Spot bullion traded at $1,321.89 an ounce at 10:33 a.m. in London after hitting $1,323.43 on Wednesday, the highest level since May, according to Bloomberg generic pricing. The precious metal is up about 3 percent this month, while the greenback’s decline in January is the most in a year.

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Gold volatility remains subdued.

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And yes, Powell wounded the dollar.

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Yes, The Fed benefitted equity and gold investors while wounding the US Dollar.

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For excellent gold charts and analysis, see Jesse’s Cafe Americain site!

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