Gold Gains As Dollar Dumps On Fed Promises

As Pantheon’s Ian Shepherdson notes:

“The Fed made no policy changes, as expected, and the key language of the statement is unchanged… In short, this is a holding operation, pending developments with both the virus itself and fiscal policy.”

Which is perhaps worrisome as we noted ahead of the FOMC statement that BofA ominously warns, “perception that the Fed is out of ammo could cause a reassessment of the Fed “put” and support USD via lower risk assets.”

For now stocks are unmoved but the action remains in currency markets as the dollar accelerates lower on Fed promises to “use all tools” and extends its global bailout swap lines.

This has helped sparked further gains in gold…

Will Powell spoil the party further?