S&P closed at new record high while the Nikkei closed nearly flat for the day.
Fed decision to keep loose monetary policy for a long time combined to its view on inflation pushed the dollar lower and sent Gold to three month highs.
Yesterday, gold market made a huge swing higher driven by multiple factors. The first one is a massive half billion dollar short covering coming from a major hedge fund and the second one is the Fed’s view on higher inflation rate which doesn’t seem to be a problem as long as it helps the economy to grow faster.
The precious metal gained more than 3% in a day from 1276$ at the opening to 1321.5$ at the close. The price is now operating a healthy pullback after failing to break the 1321.7$ resistance line.