FED Chairman satisfied with current FED policy direction

The Fed Chairman is satisfied with the current policy direction of the Fed, while leaving open the possibility of further interest rate cuts if the FOMC deems it necessary to support the economy.

Mr. Powell assessed that the worsening employment situation has changed the balance of risks in achieving the Fed's goals.

On the other hand, the current policy stance is still tightening, giving the Fed enough room to respond to potential economic developments.

Despite the slowing growth, gold prices are still receiving support from many factors. Commerzbank said in a note that strong buying from ETF investors - fueled by expectations of interest rate cuts, concerns about the independence of the Fed and geopolitical developments - could also boost gold prices.

World gold prices received support as the People's Bank of China continued to buy gold regularly, despite the sharp increase in prices. According to the assessment of Société Générale Bank (France), China will still be the "dominant player" in the gold market for many years to come, despite high prices that may further limit purchasing power.v