In this article, let’s look at the impact of the Fed chair’s speech on the equities market. The hawkishness of Yellen’s statement boosted the US dollar as well as global stocks. The MSCI All-Country Index (ACWV) was trading 0.2% higher at $442.1 on Tuesday, February 14. This is the highest mark it has seen since May 2015. The Chinese, Japanese, South Korean, and Australian indexes were also higher on the same day. The S&P Index (SPY) (SPX) (SPX-Index) has been rising for six straight days.
The overall sentiment in the equity market plays a significant role in the determination of the price of the precious metals. The below chart shows us the relative performance of these two assets.