(Kitco News) - Gold prices on the spot market held steady around $1,930 during Wednesday’s Asian trading session, but saw a run-up to the mid-$1,940s shortly after 9:30 am EDT, and continue to trend upward ahead of the Federal Reserve’s Interest Rate Decision and the FOMC chair Jerome Powell’s press conference.
While markets are fully priced in for a hold on the Fed funds rate, according to Arslan Butt, Lead Commodities and Indices Analyst at FX Leaders, gold investors will be paying close attention to Powell’s comments and to the updated economic projections, also know as the “dot plots.”
“[T]he US dollar’s value, when benchmarked against six significant currencies, remains relatively stable near 105.10, recovering from its weekly low at 104.81, he said. “The US 10-year Treasury note yield has soared to a 16-year peak at 4.365%. This rise could potentially curtail further devaluations of the US Dollar .”
Butt noted that even as markets anticipate a hold in September, “projections for rate hikes in the upcoming November and December meetings have seen a dip.”Powell’s press conference “is expected to shed light on the ‘dot plot’ and provide insights into inflation projections,” he added. “It’s pertinent to highlight that elevated interest rates augment the investment costs in non-yielding assets, signaling a potentially bearish sentiment for precious metals.
Following the FOMC rate decision, which he believes “might dictate the trajectory for gold prices,” Butt said markets will turn their attention to the Bank of England and the Bank of Japan, both of which will be announcing their own rate decisions and updating their monetary policies on Thursday. The consensus forecast calls for the BoE to raise their benchmark interest rate to 5.5% from 5.25%, while markets are pricing in a hold at -0.1% from the Bank of Japan.Ernest Hoffman For Kitco News
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold price near steady just ahead of FOMC decisionSenior Technical Analyst Jim Wyckoff prepares investors with an overview of how the markets opened and closed. What moved metal prices? How do the technicals look? By looking at important developments
Read more »
Gold, silver treading water ahead as FOMC meeting under waySenior Technical Analyst Jim Wyckoff prepares investors with an overview of how the markets opened and closed. What moved metal prices? How do the technicals look? By looking at important developments
Read more »
China lifts gold import limits after yuan recovers, lowering local gold premium(Kitco News) - China’s central bank, the People’s Bank of China (PBoC), has lifted the temporary limits on gold imports that were aimed at supporting the renminbi, but which caused the local price of gold to skyrocket.
Read more »
More gold per square kilometer than Nevada - Newcore Gold advances its Enchi project in GhanaInvestment Trends
Read more »
Silver market forecast: record prices and availabilityKitco News' contributed commentary features articles and opinions from some of the top experts in the gold industry.
Read more »
When will changes come? USD/JPY forecastKitco News' contributed commentary features articles and opinions from some of the top experts in the gold industry.
Read more »