As predicted, Jerome Powell’s speech on Wednesday did indeed prove to be the only newsworthy event of the week. The Fed Chair stuck to the usual script, citing the uncertainty in economic forecasts as reason for caution and stating that there was no rush to lower interest rates. Nothing markets haven’t heard a hundred times before. While the speech itself revealed nothing new, the subsequent reaction from Donald Trump provided more than enough meat for the media to chew on. In a scathing social media post, the president launched an all-out attack against the Federal Reserve Chairman, accusing him of playing politics, being too slow in lowering interest rates and generally describing Powell’s stewardship as “terrible”. Trump later added that “Powell’s termination cannot come soon enough”. Judging by the reaction in interest rate prediction markets, it doesn’t look like the harsh comments will do anything to sway the Fed during its next meeting.
Market conditions were somewhat quieter on Thursday in the lead up to Good Friday, but that did not stop gold from hitting yet another record high, this time reaching $3,357 an ounce. Interestingly, the large shipments of gold from London to New York now appear to be reversing course. The threat of tariffs on precious metals prompted COMEX to dramatically increase its holdings following the US election, culminating in record-breaking flows of bullion leaving Europe. Such threats were eliminated a couple of weeks ago however when Washington excluded the metals from the reciprocal tariff plan. COMEX inventories are now about 45 metric tonnes lighter as a result.
With markets in the Western hemisphere closed until next Tuesday, there is very little of substance to move the needle either way. After several weeks of non-stop action, markets will be grateful for the respite.
Amaran Risiko : Perdagangan derivatif dan produk berleveraj mempunyai tahap risiko yang tinggi.
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