Gold's price (XAU/USD) is starting to turn a bit lower on Wednesday in the US trading session after a very whipsaw start to the week. No big moves are expected until later this this Wednesday, as several traders sit on their hands until the Federal Reserve (Fed) interest rate decision later in the day. Lower US rates are often seen as beneficial for Gold to trade higher.
Market expectations show the Fed will likely keep interest rates unchanged in the range of 4.25%-4.50%, so traders will rather focus on Fed Chairman Jerome Powell's comments on the central bank's policy outlook. And here, traders might be in for a huge disappointment. Powell is not expected to comment on President Donald Trump's criticism of the Fed or why or how Trump calls for lower rates. Instead, Powell is expected to repeat that the central bank remains independent and data-dependent and will focus on its dual mandate: inflation and the jobs market.
According to Bloomberg, the market expectation is for Fed Chairman Jerome Powell to deliver a dovish pause. This should see US yields tilt lower, which opens the opportunity for Gold to surge higher and print a possible fresh all-time high.
Australian hedge funds are clamouring for Gold exposure during the second term of US President Donald Trump. They are betting that his administration will fail to arrest the US economy's spiralling debt and that Gold will act as an antidote to the bond market's carnage, Financial Review reports.
At 19:00 GMT, the Fed will deliver its monetary policy decision, followed by a press conference from Fed Chairman Jerome Powell at 19:30 GMT.
For now, the CME Fed Futures tool see the biggest odds for a 25 basis point rate cut for June, while May's odds have lost their lead over another rate pause.(Cay) Newsmaker23
Source: Fxstreet
Gold rose to a five-week high on Tuesday (July 22nd), driven by trade uncertainty and weakening US bond yields as investors continued to monitor US President Donald Trump's tariff deadline on August 1...
Gold climbed to a five-week high on Tuesday, drawing strength from trade uncertainty and weaker U.S. bond yields as investors continue to eye U.S. President Donald Trump's August 1 tariff deadline. S...
The price of Gold started the new week with gains, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes. Recent record high at $3,500 is likely to approach quickly"The precious metal ...
Gold price (XAU/USD) edges lower on Tuesday after two days of gains. However, the price of the safe-haven metal may appreciate due to prevailing uncertainty ahead of US President Donald Trump's August...
Gold prices climbed on Tuesday to their highest level in more than a month, supported by a weaker U.S. dollar and lower Treasury yields, as investors looked for progress in trade talks ahead of an Aug...
European stocks closed lower for a third session amid persistent concerns about US tariffs. The Eurozone STOXX 50 index fell 1% to 5,288, and the pan-European STOXX 600 index fell 0.5% to 544. US Treasury Secretary Bessent noted that White House...
Gold rose to a five-week high on Tuesday (July 22nd), driven by trade uncertainty and weakening US bond yields as investors continued to monitor US President Donald Trump's tariff deadline on August 1st. Spot gold prices rose 1% to $3,427.59 an...
The dollar weakened on Tuesday (July 22), with the yen among the currencies gaining ground against the greenback, as investors monitored negotiations ahead of an August 1 deadline that could impose steep tariffs on products from U.S. trading...
Asia-Pacific markets traded mixed Monday, as investors keep a close watch on the People's Bank of China's decision on its 1-year and 5-year loan...
European stocks opened the week on a cautious note, with both the STOXX 50 and STOXX 600 hovering near the flatline as investors closely monitor...
A 19% U.S. tariff on Indonesian exports could take effect earlier than the previously expected August 1 deadline, Indonesia's chief economic...
The US has signaled it will not relax its August 1 deadline for higher tariffs against the European Union as the bloc struggles to reach a deal on...