The Fed is next schedule to meet in December. Currently the market has a 100% chance that the fed will increase interest rates when it next meets. The markets will now focus on March 2019.
The 2-year yield dropped 5-basis points in the wake of Powell’s speech. The Fed chair said the central bank would be data dependent, and would continue to strive for neutral policy.
By stating that the Fed was near a range that would be considered neutral, Powell reduced expectations that the Fed would increase rates by 100-basis points in 2019.
The markets now believes that it is priced correctly, and that could cap upward momentum in the greenback. Since gold is priced in dollars, a weaker dollar will provide upside to the yellow metal.