Gold Trades Steady as Markets Wait For FOMC Decision - Forex News by FX Leaders
Gold Trades Steady as Markets Wait For FOMC Decision

Gold Trades Steady as Markets Wait For FOMC Decision

Posted Wednesday, January 27, 2021 by
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.

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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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