Gold Prices Rise as Dollar Weakens Ahead of Fed Meeting
The safe haven metal gold is trading bullish on Wednesday, buoyed by a weakness in the US dollar, as markets look forward to some economies
The safe haven metal gold is trading bullish on Wednesday, buoyed by a weakness in the US dollar, as markets look forward to some economies reopening and wait to hear from the Fed on its forward guidance later today. At the time of writing, GOLD is trading at a little above $1,710.
Gold prices received a boost after the dollar fell to the lowest level in two weeks over an improvement in the risk sentiment in markets over reports that some countries are looking at easing shutdown restrictions. Australia, New Zealand, some European countries as well as some states in the US are actively looking at resuming some economic activity as the rise in the number of coronavirus cases slows down.
Meanwhile, gold prices are also enjoying support ahead of the Fed meeting, with traders anticipating the announcement of more stimulus measures in the wake of the coronavirus crisis. The Fed is due to release its policy statement later today, and while it is widely expected to hold rates steady, investors are keen for clues on how long the interest rates could remain at the present low levels.
The yellow metal prices also received a boost following weak consumer confidence figures from the US. Consumer confidence tumbled to the lowest level in six years during April as a result of the shutdowns across the US, heightening the safe haven appeal of gold in markets.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals