Gold Prices Rise as Dollar Weakens Ahead of Fed Meeting
Arslan Butt • 1 min read
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.