Gold price is trading sideways at $1.930.
During Wednesday’s Asian trading hours, the gold price (XAUUSD) is consolidating around $1,930. Market participants prefer to stay put. Ahead of the Federal Reserve (Fed) Interest Rate Decision and FOMC Press Conference. These occurrences may cause market volatility.
Meanwhile, after recovering off a low of 105.10. A measure of the value of the US dollar vs six major currencies has remained unchanged at 105.10. The weekly low was 104.81. The yield on the 10-year US Treasury note has reached its highest level in 16 years. Sitting at 4.365%, which may restrict the USD’s downside.
Gold Traders expect the Federal Reserve (Fed) to maintain interest rates at 5.25%-5.50% during its September meeting.
On Wednesday, the Federal Reserve (Fed) will release the results of its two-day monetary policy meeting. And interest rates are largely expected to remain in the 5.25% to 5.5% range. According to the CME Fedwatch Tool, the probability of the Fed keeping rates steady in September are 99%. According to the CME FedWatch Tool, the chance of another rate hike was reduced. At the November and December meetings.
Fed Chairman Jerome Powell’s press conference will provide some insights concerning the ‘dot plot’. And inflation forecasts. It should be noted that Rising interest rates increase the opportunity cost of investing in non-yielding assets, meaning that precious metals have a negative outlook.
Following that, gold dealers will be looking forward to the highly anticipated Fed interest rate announcement on Wednesday at 18:00 GMT. This incident might offer gold prices a clear direction. The Bank of England will release its benchmark rates on Thursday, while the Bank of Japan will meet on Friday to discuss monetary policy.
