Gold Slides Lower After a Less Dovish Than Expected Fed Statement - Forex News by FX Leaders
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Gold Slides Lower After a Less Dovish Than Expected Fed Statement

Posted Thursday, September 19, 2019 by
Arslan Butt • 1 min read

Early on Thursday, gold prices fell sharply below $1,500 and are currently trading steady. At the time of writing, GOLD prices are trading at a little above $1,495.

After trading cautiously ahead of the Fed meeting, gold turned bearish after the Fed sounded less dovish than expected about its monetary policy. The 0.25% rate cut came in as expected and as markets had already priced in the rate cut, causing the decline in gold prices.

On Wednesday, gold prices had climbed higher as markets were expecting the Fed to sound extremely dovish. Since the meeting, prices have slipped as markets readjusted their expectations for the US economy based on Fed Chair Powell’s comments.

Later today, the Swiss National Bank and the Bank of England are also expected to hold their meetings and shed light on their monetary policies. However, this may have a muted impact on gold as both central banks are expected to hold their interest rates steady.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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