There's still room for bullion to set new all-time highs, although that may take time, said Ole Hansen, head of commodity strategy at Saxo Bank A/S.
"The new policy framework is meant to help keep real yields low well into the economic recovery by dampening expectations for rate hikes until the labour market has tightened significantly, and by encouraging higher inflation expectations through displaying a greater tolerance to allow an overshoot in the future".
For now though, higher Treasury yields is certainly something that is making the trading situation a little more tricky and the risk-off move in Japanese markets following Abe's reported resignation complicates the yen picture even further this week.
Steven Adams, OKC Thunder bounce back with overtime win v Houston Rockets
Steven Adams (9.2 rebounds per game) and Chris Paul (6.7 assists per game) are the Oklahoma City leaders in rebounds and assists. Living on the perimeter led them to get outscored 46-34 in the paint, and OKC outscored them on second chance points 17-7.
Prior to the coronavirus pandemic the USA unemployment rate had hovered near 50-year lows at 3.5 percent, which brought many people back into the workforce as firms struggled to fill open positions. Powell called the move a "robust updating of Fed policy".
"There's is still a healthy economy under here, except for this area that's been directly affected by COVID", Powell said in a discussion as part of the Jackson Hole central banking conference. First of all, inflation has to reach 2% and it hasn't been at that level since 2012. On Thursday, prices slumped as much as 2.3 per cent after rising 1.1 per cent.
Advocates of the new regime have argued the central bank needed to let the inflation rate drift higher to average 2.0 percent over the longer run.
"While the Fed will likely need to ramp up their asset purchases to support the economy, they didn't provide any signs that will happen soon", Moya said.