GLD Drops 1.78% After FOMC Lockhart’s Confident Florida Speech But Instantly Rebounds
By FX-Analyst
Summary
- There are 2 main forces affecting gold price, Europe and FOMC. The drama in Europe has deflected the media attention which the FOMC deserves.
- Atlantic Fed President and FOMC Voter Lockhart deflected weak inflation arguments against liftoff in mid-2015.
- Lockhart argued that confidence in the progress towards maximum employment and stable prices is sufficient for policy tightening given the lag in monetary policy.
- Lockhart’s compelling argument forced GLD to drop 1.78% and reinforced the bearish trend on GLD.