Investors anxiously awaited the Fed’s statement this week, which provided cues on the central bank’s monetary policy outlook. Fed Chair Powell reiterated that some asset prices are too high and that the central bank will not curb its asset purchases anytime soon.

Subsequently, gold rebounded slightly as the dollar dropped 0,5% this week after aneasing in the steady rise of U.S government bond yields – uncertainty with regards to real inflation in the U.S places gold in a favourable position as the safe have nalternative. Michael Schumacher, bond strategist at Wells Fargo Bank, told CNBC that Powell, “is certainly getting rid of tapering happening any time soon. He’s slamming that door shut… You’ll have a couple of months of hotter inflation prints. There will be more pressure on the Fed to explain this inflation framework.”