Gold prices jumped to new historical levels in early Monday trading, for the second day in a row, as spot prices exceeded $2,100 per ounce, after statements by Federal Reserve Chairman Jerome Powell strengthened traders’ confidence that the US central bank may reduce interest rates early next year.
Powell said Friday that the risks of both insufficient and excessive monetary tightening have become more balanced. However, he stressed that the US Central Bank has no plans to reduce interest rates at the present time.
Markets currently expect a 70 percent chance of an interest rate cut by the US Federal Reserve by next March, according to CME's FedWatch tool.
Jerome Powell's comments were viewed by the markets as leaning toward monetary easing, which led to a decline in the dollar index and 10-year Treasury yields.
