Federal Reserve Renomination - Gold falls $1,795

Introduction

Hello Everyone. Welcome current and new viewers to our weekly news update. Today's news article highlights the renomination of Fed Chairman Jerome Powell and the implications on Gold.

Gold

In two weeks, prices were near their lowest level due to a stronger dollar and expectations that the US Federal Reserve would accelerate its taper process to curb inflationary risks.
Spot Gold figures (Tuesday) fell further to $1,795/ounce than $1841. The fall in gold prices was a result of the renomination of Fed Chairman Jerome Powell.
The market has added confidence from the renomination of Powell that will see the Fed raising interest rates in 2022, thus increasing bond yields. The higher interest rates translated into more opportunity costs of holding gold, which pays no interest.
Analyst at Julius Baer, Carsten Menke, indicated that the Gold market had gambled the nomination of Lael Brainard to become the next Fed chairman, as she is considered to be more dovish than Powell in terms of monetary policy.