Gold is arguably the oldest interment tool in the world, and with that it has a long track record of being a safe haven asset, whereby if uncertainty descends upon the markets, funds are ploughed into the metal.
There was a burst of volatility when Jerome Powell delivered his speech and initially the US equites tumbled, and the US dollar rallied.
US recession fears are back in focus as the flash services PMI report dropped to 44.1, the lowest report since May 2020.
Fears the US economy might be heading for an actual recession have resurfaced because of the brutal New York Fed manufacturing index report.
Equity traders pounced on the weaker-than-expected US CPI data as the Federal Reserve might not be as hawkish as initially feared.
Stock markets in the US are up as the dip in bond yields have paved the way for the bulls to take centre stage.
It has been a choppy 24 hours in the markets as the Fed Reserve carried out a dovish hike yesterday, and today’s GDP report suggests the country is now in a recession.
Stock markets in Europe mostly finished in the red due to worries about an energy shortage.
Worries about inflation are gathering pace as the US producer price index (PPI) rate jumped to 11.3%, close to its record high.
The jump in the US inflation rate triggered major volatility in the markets as traders now feel the Federal Reserve will be even more hawkish than previously expected.
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