On Wednesday, the gold price did not change much and stayed at about $2,035 per ounce. This situation came after the gold price had gone up a bit in the session before. The main reasons why the gold price did not drop include the dollar becoming weaker and the yields on Treasury bonds going down.
Investors are now looking forward to hearing from the US Federal Reserve officials. They hope to get some signs about what the Federal Reserve might do next with its monetary policy.
But, the recent strong reports on US employment and the activity in the service sector, along with firm statements from Jerome Powell, the Chair of the Federal Reserve, have made investors think twice about expecting lower interest rates.
Jerome Powell, in an interview during the weekend, said that it is not likely there will be a cut in interest rates in March. This statement matched what he said last week after the meeting of the Federal Open Market Committee (FOMC).
Powell also mentioned that the Federal Reserve plans to lower interest rates at a pace that is slower than what many people in the market are thinking.