Brainard doesn't get the nomination
It's clear which Fed candidate the gold market preferred.
The precious metal is down $32 to $1812 in the aftermath of news that the White House will renominate Jerome Powell to another four-year term. The gold market clearly would have preferred the more-dovish Lael Brainard. She might have shifted to a more-dovish course and allowed a wider overshoot in inflation.
The dollar was broadly stronger after the news.
In terms of technicals, this will deepen the consolidation that's been slowly unfolding since the pandemic.
Seasonally, there's a powerful trend of strength for gold beginning in December and running into February so this dip could be bought. Though there isn't much support now until $1750.
Many in the market are mulling a hawkish pivot from Powell now that he has the re-nomination. The risk may be that he wasn't acting and will stick with his slow-taper plan and belief that inflation will be transitory.
