Gold Trades Steady as Markets Wait For FOMC Decision
Arslan Butt • 1 min read
Early on Wednesday, gold is holding somewhat steady as traders cautiously await the Fed’s monetary policy decision that will be announced later in the day to decide their next moves. At the time of writing, GOLD is trading at a little above $1,849.
Markets are widely anticipating the Fed to keep its monetary policy unchanged and remain firm on its commitment to main low interest rates until employment and inflation in the US recover to pre-pandemic levels. Dovish comments from Fed Chair Jerome Powell are likely to support gold’s bullishness later in today’s session.
Meanwhile, uncertainty about the next round of fiscal stimulus measures in the US is keeping gold prices from climbing higher. According to Democrat leader Chuck Schumer, his party leaders in the Senate are likely to progress on Biden’s proposal even if Republicans fail to back their plans.
Gold’s safe haven appeal also faces downward pressure on the latest projections for global economic growth by the IMF, which have been revised higher since the previous estimates. The IMF is optimistic that the rollout of COVID-19 vaccines and stimulus measures could boost economic recovery this year.