Gold Holds Steady as Markets Wait For FOMC Decision
Ahead of this month’s upcoming FOMC meeting, gold is holding somewhat steady as traders look for cues from the Fed policymakers’ expectations for the global economy and US’s monetary policy before making their next moves. At the time of writing, GOLD is trading at a little above $1,736.
The previous session ended on a bullish note for the precious metal which closed Monday in the green amid short-covering and higher interest among buyers at lower levels. In addition, a mixed sentiment in markets is also contributing to the choppy trading seen in gold lately, with equities exhibiting signs of mixed trading even as US Treasury yields and the dollar trade steady for now.
Gold is likely to stay supported this week as the Fed is widely expected to maintain its dovish outlook despite revising economic growth projections for the US higher for the year. Markets are anticipating that the US central bank will continue to keep interest rates low, its monetary policy loose and even stick with its bond purchase program as previously intended.
Greater dovishness by the central bank is likely to support the safe haven appeal of gold and support its bullish moves. Even as markets expect the Fed to hold its monetary policy steady at the upcoming meeting, there will be considerable interest for clues on the future outlook for the US economy.
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