![]() ![]() If inflation doesn't cool enough, Powell will raise rates in June."Īlthough the Federal Reserve's tightening cycle might not be over, Milling-Stanley said he doesn't expect this stance to have much impact on gold. The last time he thought that the market wasn't listening to him last summer, he came out and slapped them down pretty hard. "Powell sees no scope for a rate hike this year and I am inclined to believe him. "The market is believing what it wants to believe that that is dangerous," said Milling-Stanley. "It will take some time, and in that world, if that forecast is broadly right, it would not be appropriate to cut rates and we won't cut rates."ĭespite this outlook, the CME FedWatch Tool shows markets expect interest rates to end the year 100 basis points lower, with the first rate cut coming as early as July. "We on the committee have a view that inflation is going to come down not so quickly," Powell said in his press conference Wednesday. However, Powell was very clear that the central bank is not ready to pivot to easing rates anytime this year. After raising interest rates by 25 basis points Wednesday, the Federal Reserved moved its monetary policy into a more neutral position. While Milling-Stanley is bullish on gold, he added that investors do need to be careful because volatility could rise in the near term as markets are largely ignoring the Federal Reserve's outlook. June gold futures last traded at $2,057.30 an ounce, up 1% on the day. The comments come as gold prices trade down from their record highs but remain in robust positive territory. "I think gold is in a solid position to go higher." "I don't think we have seen a peak in gold just get," he said. In an interview with Kitco News, George Milling-Stanley, chief gold strategist at State Street Global Advisors, said he expects safe-haven demand to overshadow any more rate hikes from the Federal Reserve. ( Kitco News) - Gold's brief overnight push to a record high above $2,080 an ounce could just be the start of a long-term rally through 2023 as market uncertainty and investor anxiety drive market prices, according to one market strategist. Receive a comprehensive recap of the day's top stories directly to your inbox. ![]() Get all the essential market news and expert opinions in one place with our daily newsletter.
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