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Gold keeps to 1-month maximum ahead of Fed meeting
On Tuesday, gold stuck to the month’s maximum in European trade because market participants looked ahead to a Federal Reserve policy gathering for any clues on the timing of the next American rate lift as well as prompts on how the key US financial institution intends to pare back its balance sheet.
Gold futures got to $1,256.73 a troy ounce adding 0.2% in New York.
The Fed isn’t actually supposed to take action on its interest rates at the conclusion of the two-day policy gathering on Wednesday. So, rates won’t probably leave the range 1.0%-1.25%.
The key bank is going to issue its post-meeting statement as traders monitor any change in language that could hint more clearly at a rate lift in the months ahead.
Traders will also monitor how and when the Federal Reserve will start cutting its $4.5 trillion balance sheet.
The most popular precious commodity is extremely sensitive to fluctuations in American interest rates.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.