Gold Trades Steady as Markets Wait For FOMC Decision

Gold is holding somewhat steady as traders cautiously await the Fed's monetary policy decision that will be announced later in the day to

Arslan Butt•Wednesday, January 27, 2021•1 min read

Gold Trades Steady as Markets Wait For FOMC Decision

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 See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

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.