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

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 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.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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