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Gold Price Analysis: Fed Appointment, Rate Hike Expectations & Strong USD Weigh on Gold

November 24, 2021

Via: DailyFX

The precious metal has been on the wrong side of a large move in recent days as it struggles to halt mass selling which began on November 22nd after it was confirmed that the more ‘hawkish’ of the two main candidates, Jerome Powell, would serve another term as Chairman of the Federal Reserve Bank.

While Powell is far from hawkish and has actually proven to be one of the most dovish Chairman in recent decades, he was viewed by the market as being less dovish than fellow candidate, Lael Brainard. As such, a renewed expectation of interest rate hikes showed up in the treasury markets with the 2, 5 and 10 year rates accelerating past prior highs.

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