Gold Steady as Markets Look to Fed’s Policy Meeting
On Tuesday, gold prices continue to trade unchanged after a bullish ride in the previous session, supported by a weakness in the US dollar
On Tuesday, gold prices continue to trade unchanged after a bullish ride in the previous session, supported by a weakness in the US dollar ahead of the Fed’s monetary policy meeting starting today. At the time of writing, GOLD is trading at a little above $1,965.
Although the Fed is expected to keep rates on hold, this month’s meeting will be worth focusing on for more information on the Fed’s new strategy for average inflation and for spurring employment levels in the US. The greater tolerance for inflation is a marked shift from the central bank’s previous attempts to hold inflation around 2%.
On Monday, the dollar fell to an over two week low, sending gold prices up by around 1%. Whenever the dollar weakens, gold becomes more affordable to purchase for holders of other currencies, increasing the demand and prices of the yellow metal.
The safe haven appeal of gold remains supported on account of the ongoing coronavirus crisis, with most countries around the world reporting a continued rise in cases. However, this sentiment came under pressure in the previous session amid hopes for the development of a vaccine soon.
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