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Gold heads north, with Fed meeting in focus
On Tuesday, gold jumped, underpinned by hopes that the US main financial institution is going to send financial markets a more dovish message as for future monetary policy following the two-day policy gathering scheduled to start a bit later on Tuesday.
On the Comex exchange, gold futures surged by about 0.6% hitting $1,309.25 a troy ounce.
Besides this, spot gold concluded the trading session at $1,309.43 per ounce, jumping by about 0.45%.
In addition to this, the Federal Reserve is going to come out with fresh estimates for economic surge as well as interest rates that many experts tell might hint at another rate lift in 2019.
The major US bank has already hinted that it won’t probably lift interest rates again in the nearer future, after last year’s four increases.
Indicating the evergreen buck’s purchasing value against its main peers the USD index demonstrated an outcome of 95.85, keeping to a two-week minimum.
The evergreen buck is a bit pressured, giving some support to the yellow metal.
Meanwhile, palladium prices demonstrated their fresh peaks reacting to the news that Russia is on the verge of banning exports of precious metals scrap.
As for spot palladium, it surged by 1.4% hitting $1,599.11 an ounce, having reached a record maximum of $1,601.45.
There has been a buzz that Russia would tame exports of some scrap materials. Such a tight market as palladium couldn’t certainly neglect that news.
Russia happens to be a key producer of palladium, employed mostly in catalytic converters for vehicles with gasoline power plants. Demand for palladium has tacked on due to the fact that diesel engines have lost market share as a result of public worries about air quality.
Silver futures rallied by 0.7% reaching $15.42 a troy ounce. Platinum surged by 1.7% being worth $848.10 an ounce.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.