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26 Feb 2015
Yellen’s Q&A signals long-term bullish outlook for Gold – Sunshine Profits
FXStreet (Barcelona) - Arkadiusz Sieroń of Sunshine Profits, interprets Yellen’s Q&A session as being more supportive for Gold in the longer-term.
Key Quotes
“the Fed makes an interest rate hike dependent on the level of inflation, while inflation depends on wage growth, which has not recorded any significant pickup in wage growth. It means that the Fed signals no rush to raise rates.”
“Therefore, we interpret Yellen’s spontaneous answer sessions as bit more bullish for the gold prices than the carefully prepared testimony.”
“Taking under account gold prices after Yellen’s testimony, the market could think similarly and the longterm outlook for gold remains favorable.”
“Based on the technical developments in the gold charts, though, the shortterm outlook does not have to be as bright.”
Key Quotes
“the Fed makes an interest rate hike dependent on the level of inflation, while inflation depends on wage growth, which has not recorded any significant pickup in wage growth. It means that the Fed signals no rush to raise rates.”
“Therefore, we interpret Yellen’s spontaneous answer sessions as bit more bullish for the gold prices than the carefully prepared testimony.”
“Taking under account gold prices after Yellen’s testimony, the market could think similarly and the longterm outlook for gold remains favorable.”
“Based on the technical developments in the gold charts, though, the shortterm outlook does not have to be as bright.”