Gold Retreats on Powell’s Reappointment News

Gold prices have put in an aggressively retreating move Monday, seemingly driving on the news that Fed Chair Jerome Powell has been reappointed for a second term.

While few would consider Chair Powell as a hawk, the fact that this move has printed so cleanly off of that headline indicates that it has something to do with gold prices falling through the key support level at 1834.

Gold prices are dipping as Powell’s nomination has given more credibility to the fact that inflation may be transitory in nature.

This is what was keeping gold prices topped throughout the summer even as inflation rates jumped higher; and when gold prices popped earlier in November, it was after a dovish FOMC’s decision in which Chair Powell refused to hike interest rates.

Then the inflation print dropped a week later, allowing for gold prices to run all the way up to Fibonacci resistance around 1870.

Gold put in a massive incline after inflation printed at 30-year highs two weeks ago. But since then, buying pressure has given way to sellers.