Powell Speech Boosts Gold: Prices Rise

by Archynetys Economy Desk

Date of Creation: August 22, 2025 14:05

FED President Jerome Powell’s speech signal in Jackson Hole in his speech after ounce Gold saw the highest level of the day with $ 3365. After the statement, the stocks of the great US banks gained value

FED President Jerome Powell stated that a possible slowdown in the labor market could reduce inflation concerns and signaled that the Central Bank could make interest rate reductions at the next month’s meeting. Powell said it may need to adjust the monetary policy stance due to increasing labor market risks and changing economic appearance.

After Powell’s interest rate cut signal, ounce gold made 0.8 premiums and saw the highest level of the day with $ 3365. After Powell’s statements, the stocks of the Great US banks gained value.

Gram Gold is watching horizontal

Mobility under ounces was reflected in gram gold prices. Gram gold, which started the day horizontally, gained 0.8 and rose to 4,432 pounds.

Expectations of interest rate reduction from Fed are strengthening

FED President Jerome Powell’s Green light on the possibility of interest rate reduction, the traders in the Wall Street significantly increased their bets that the Fed would go to interest rate reduction next month. This increased the possibility of more than one interest rate reduction by the end of the year and created a significant mobility in the markets.

According to CME Group data, futures transactions increased the possibility of interest reduction at the Fed’s next meeting from 75 %to 91 %on Thursday.

In addition, the probability of interest rate reduction of three quarters by the end of the year increased from 25 %to 37 %.

Interest reduction expectations, especially under the leadership of short -term notes, caused a rally in US treasury bonds; These notes are very sensitive to the short -term appearance of monetary policy.

The return of 10 -year bonds, a key indicator for borrowing costs throughout the economy, fell from 4,329 %to 4,256 %.

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