Gold and silver are trading higher as the dollar drops after Fed Chair Powell said it is unlikely that the next policy rate move would be a rate hike.
Portfolio Pulse from Benzinga Newsdesk
Gold and silver prices have increased as the US dollar weakened following comments from Fed Chair Powell, who stated that the next policy rate move is unlikely to be a rate hike. This has implications for assets related to gold and silver.
May 01, 2024 | 7:10 pm
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POSITIVE IMPACT
The price of GLD, an ETF that tracks the price of gold, is likely to increase in the short term due to the weakened dollar and Powell's comments.
GLD tends to move inversely to the US dollar. Powell's comments reducing the likelihood of a rate hike decrease the dollar's appeal, making gold more attractive as an investment.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
The price of SLV, an ETF that tracks the price of silver, is expected to rise in the short term as a result of the dollar's decline and Powell's remarks.
SLV's price often increases when the dollar weakens. The anticipation of no rate hikes as indicated by Powell makes silver, and consequently SLV, more appealing to investors.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90