Gold prices rose ahead of Fed statement

Gold prices rose ahead of Fed statement

2020-06-10 • Updated

A temporary return of  risk-off pushed XAU/USD upward after the recent pullback. It has broken through the key resistance level at $1700, that’s why it may continue climbing up further to the next retracement level at $1750. Last Friday gold prices fell dramatically after the surprisingly positive NFP report to the support level at $1680. That encouraging data was a clear signal that economy is recovering. As a result, investors turned to riskier assets that day on an optimistic tone.

Nevertheless, gold prices have gained for two days straight ahead of the Fed statement on June 10 at 21:00 MT time. Gold traders are waiting for guidelines from Jerome Powell, the Head of the Fed. If interest rates are low, gold will gain. It decreases the opportunity cost of holding non-yielding metal. Gold is also likely to be a hedge against inflation. The Fed’s prospect on a future recovery and downside risks will affect gold prices. Stay tuned!

Check the economic calendar

XAUUSDDaily.png

TRADE NOW

Similar

What will move the market on September 6-10?
What will move the market on September 6-10?

Last Friday’s NFP was disappointing. The reaction of the markets was astonishing. Will it last longer? Let's find out the main trade opportunities for the upcoming week.

USD Declines on Powell Remarks
USD Declines on Powell Remarks

After multiple hawkish remarks over the past few days from non-voters members, the Federal Reserve chairman Powell surprised the markets with some dovish remarks…

This is What We Know So Far
This is What We Know So Far

The US Futures dropped on Thursday following some remarks by some of the Federal Reserve members earlier today, including Bullard who repeated his previous statement…

Latest news

Gold is Rising Despite Inflation Returns
Gold is Rising Despite Inflation Returns

Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.

Can the Chinese Economy Recover?
Can the Chinese Economy Recover?

Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera