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Gold stands still as Fed meeting starts
On Tuesday, gold was intact because market participants shifted their attention to this week’s Fed Reserve monetary policy gathering.
On the Comex exchange, February delivery gold futures went down by 0.06% being worth $1,251.10 a troy ounce.
On Tuesday, Fed policymakers kicked off their two-day gathering. They’re generally anticipated to follow through with another rate lift, which would be final in 2018.
Market participants are going to focus on updated economic projections, especially on the dot plot laying out expectations for interest rates as well as the post-policy gathering press conference by Fed Chair Jerome Powell. Worries about the outlook for global surge along with trade clashes and market volatility have helped investors to push back expectations on the anticipated tempo of Fed rate lifts next year.
While Fed representatives previously indicated three rate hikes in 2019, market participants are starting to bet the Fed might stop its rate lifts altogether as risks to the American economy rise.
A slower tempo of rate lifts should diminish the pressure on non-yielding yellow metal.
What might ironically affect the Fed’s verdict is the fact that on Monday American leader took a shot at the major US bank, telling that he finds incredible that the Federal Reserve was geared up towards lifting rates once again this year considering the already strong greenback and minor inflation.
As for other metals trading, silver futures managed to lose about 0.03% demonstrating a reading of $14.755 a troy ounce by 10:35 AM ET.
As for palladium futures, they headed north by up to 0.37% ending up with a result of $1,186.40 an ounce. In addition to this, platinum futures went down by approximately 0.38% reaching $792.90.
As for base metals, copper was seen diving by 2.09% trading at $2.697 a pound.
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.