Gold remains solid trading well above $1,700 with the spot price consolidating at $1,715. Jerome Powell’s comments had a mixed effect. On one hand, he mentioned that the economy will probably remain weak (in other words, a V-shaped recovery should be considered almost as utopic), while on the other hand, he said that he sees little chance of negative interest rates. The first point is probably positive for bullion demand coming from the investment sector, while the second one could have the opposite effect.
Technically the situation remains supportive for gold amid high uncertainty on markets and the strong stimulus coming from central banks.
