Gold is trading steady as traders wait on the sidelines to hear from the Fed on its latest policy decision before making their next moves. At the time of writing, GOLD is trading at a little above $1,961.

September’s FOMC is especially important as it is the first one after the Fed announced a shift in its strategy towards maintaining inflation at an average of 2% and lending support to boost employment levels in the country. Traders eagerly await clarity from the central bank on how the Fed would support its inflation goals moving forward.

Expectations that the Fed would continue its dovish stance are supporting the safe haven appeal of gold and exerting downward pressure on the US dollar for now. The US dollar shares a negative correlation with gold, helping the yellow metal prices edge higher whenever it weakens.

Gold also remains supported by continuing concerns about the economic impact of the coronavirus pandemic globally. With most countries seeing record contractions in their GDP even as cases continue to rise, hopes for a swift economic recovery have been dashed, helping the precious metal strengthen lately.