Gold - Maximum price since the Beginning of the Month
The results of the meeting of the US regulator were perceived as insufficiently tough. The median forecast of the FOMC members on the interest rate at the end of 2023 did not change and remained at 0.1% — this was the key fact. At the same time, the markets highly estimate the probability of a rate increase to a higher value. And the Fed also reiterated the need to maintain the current rate until the labor market reaches maximum employment, and inflation does not rise to 2% and will last here for some time. It was expected that the regulator's rhetoric would change somewhat in the direction of a faster increase.
At a press conference, Fed Chairman Jerome Powell noted the uneven, far from complete, economic recovery. At the same time, economic estimates were revised up significantly. The regulator forecasts US GDP growth of 6.5% in 2021, up from 4.2% previously. The average long-term forecast remained unchanged at 1.8%. Powell also noted expectations of stronger inflation, although at the moment consumer price growth remains below target. As a result of the Fed meeting, the dollar rate fell sharply against all assets, including precious metals.