Gold has remained constant at 1,932 ahead of significant central bank events.
During the Asian session on Tuesday, the gold price (XAUUSD) consolidates recent advances over the $1,900 level. Traders prefer to remain on the sidelines while the major central banks gather to discuss monetary policy. The Federal Reserve (Fed), the Bank of England (BoE). And the Bank of Japan (BoJ) will publish interest rate decisions later this week. Which may cause volatility in the market. . At the time of writing. Gold is down 0.06% on the day, trading at $1,932.
The Federal Reserve (Fed) is largely projected to keep interest rates between 5.25% and 5.5%.
- The Federal Reserve (Fed) is set to declare its two-day monetary policy meeting on Wednesday. And interest rates are largely expected to remain in the 5.25% to 5.5% range. The probability of keeping rates steady are 99%. According to the CME Fedwatch Tool. Markets are nonetheless wary of the Fed’s outlook, given to recent increases in inflation statistics and the US economy’s resilience, which might pave the way for future rate hikes.
Gold Traders will be watching the Fed, Bank of England (BoE), and Bank of Japan (BoJ) monetary policy meetings attentively.
Gold Traders will be paying careful attention to Federal Reserve Chairman Jerome Powell’s news conference, which may reveal indications about the future course of interest rates. It is worth mentioning that rising interest rates boost the cost of borrowing. The opportunity cost of investing in non-yielding assets suggests that precious metals have a poor future.
Meanwhile, a measure of the US dollar’s value against six major currencies is seeing some follow-through selling but remains above 105.10. Treasury rates in the United States decreased on Tuesday, with the 10-year bond falling to 4.30% by press time. The strength of the US dollar is being eroded by falling rates.
Gold dealers will be watching the Fed’s interest rate announcement on Wednesday at 18:00 GMT with bated breath. The focus will move to Fed Chairman Jerome Powell’s press conference at 18:30 GMT. For any signals regarding the ‘dot plot’ and inflation expectations. On Thursday, the Bank of England will publish its benchmark interest rates. While the Bank of Japan will hold its monetary policy meeting. These numbers might offer gold prices a clear direction.
