Gold Dips as Dollar Gains Strength Prior to Fed Meeting
Arslan Butt • 1 min read
The US dollar surged 0.1% higher, nearing a two-month high, which has made gold more expensive to purchase for holders of other currencies. The Federal Reserve meeting is due to start later today and expectations are high that the central bank would cut rates for the first time in more than a decade.
Gold prices can also be impacted by the US-China trade talks being held in Shanghai starting today. After talks broke down in May, this is the first time that both countries’ trade teams are meeting face-to-face as they take negotiations forward towards a trade deal.
Gold prices also remain supported by uncertainties surrounding Brexit in the UK. As the risk of a no-deal Brexit climbs higher, gold’s safe haven appeal also gains strength. Fears are high that a hard Brexit would push UK’s economy into a recession.