Gold waits to increase in price after the upcoming FOMC meeting
Hello dear friends! In today's trading session, gold experienced slight volatility and decreased by $9 per ounce to reach $1,935 after reaching its highest level in the past 4 weeks.
Due to the Labor Day holiday in the US, there wasn't much information impacting gold trading. However, following economic data released in the US showing a sharp increase in unemployment rates and a tendency for wages to rise, the market expects that the Federal Reserve will complete its interest rate hike at upcoming meetings.
As such, "the precious metal will depend on what happens with bond interest rates before the September FOMC meeting." If we observe a decrease in interest rates based on expectations for future hikes, this will be a positive development for gold.
Due to the Labor Day holiday in the US, there wasn't much information impacting gold trading. However, following economic data released in the US showing a sharp increase in unemployment rates and a tendency for wages to rise, the market expects that the Federal Reserve will complete its interest rate hike at upcoming meetings.
As such, "the precious metal will depend on what happens with bond interest rates before the September FOMC meeting." If we observe a decrease in interest rates based on expectations for future hikes, this will be a positive development for gold.
Commento:
Despite significantly easing the Fed's hawkish bets, the US Dollar remains resilient as fears of a recession in the US have eased.
Commento:
It can be observed that last night, the US dollar had a hot session which put pressure on gold prices, causing them to reach their lowest level in a week.
