Gold stabilizes after soaring to all-time high ever, post Powell’s testimony

Spot Gold prices reached a new record high on Wednesday, with XAU/USD reaching a tentative all-time high ever at $2,150.00. the precious metal is trading at $2143.64, and is still up 0.74% at the time of writing.

This comes after Federal Reserve Chair Jerome Powell’s two-day appearance, where he clarified the US central bank’s outlook on inflation, indicating that the Fed does not see any imminent risk of a US recession. Powell also highlighted that progress on inflation is ongoing, and while the Fed is waiting for more evidence that inflation will reach 2%, US policymakers are looking for more of what they’ve already seen, not necessarily better overall inflation readings.

On Powell’s remarks, markets drove Spot Gold prices to all-time highs, and market expectations for improving US economic prospects are being reinforced by February’s ADP Employment Change miss.

ADP Employment Change for February was 140K, as opposed to the 150K estimate, and the print from the prior month was revised to 111K from 107K. The markets anticipate that the headline number for the US Nonfarm Payrolls (NFP), which are scheduled for release on Friday, will decline to 200K from the 11-month high of 353K set last month.