Gold loses nearly $25 per ounce after Powell’s speech

After dropping nearly $25 following the highly anticipated speech by Federal Reserve Chair Jerome Powell, gold could be at risk of falling to $1,600 an ounce unless buyers step in to buy the dip, according to analysts. The Fed chair wants to avoid the mistakes of the 1970s, which is why he plans to act aggressively now.

Gold is ending the week down 0.8%, with the precious metal trading at $1,736.80 versus the opening price on Friday at $ 1758.06 down 1.32% on the day.

Interest rates will remain elevated for longer than markets expect according to Fed Chair Jerome Powell. “Restoring price stability will likely require maintaining a restrictive policy stance for some time,” Powell said Friday.

Powell also did not rule out another 75-basis-point hike at the upcoming September meeting, reiterating that a lot will depend on the macro data released in the next three weeks.