Fed Coverage: To keep rates at zero till 2023, Powell wants more fiscal support, Oil surges on EIA report/Fed, Gold struggles post-FOMC
Despite a dovish Fed, gold prices struggled after Fed Chair Powell emphasized the further need for more fiscal support from Congress and after the latest projections showed inflation may finally test their 2.0% target in 2023. Gold did not get any dovish surprises, but the longer-term outlook still looks bullish as the Fed will keep rates near zero and will likely do more as the economy struggles to get back its strong labor market.
Gold did not get what it needed to break above $2000 this week, but with rising risks to the outlook due to the lack of support for Washington DC, Wall Street will see more from the Fed before the year is over. The Fed has more ammo and they will use it, they will have to wait to see what Congress does first.