Is Today’s Higher Gold Price Due To The Impending News of the Federal Reserve Meeting?
“Gold prices rose on Monday as the U.S. dollar weakened ahead of this week's
Federal Reserve meeting.
Gold for December delivery settled up US$11.90 to US$1,795.80 per ounce.
The Federal Open Market Committee will hold a two-meeting this week, ending
with a statement and press conference on Wednesday. The central bank is
expected to begin easing off US$120 billion in monthly bond purchases
introduced early in the pandemic as it begins tightening monetary policy amid
"It is likely to announce on Wednesday evening when it will begin the process
known as tapering. Our economists expect bond purchases to be phased out by
the middle of next year. In addition, market participants will be looking to
see whether Fed President Powell gives any signals about a rate hike,"
Commerzbank analyst Daniel Briesemann said in a note.
The U.S. dollar was last seen lower, making gold more affordable for
international buyers. The ICE dollar index was last seen down 0.16 to 93.96
points. However bond yields rose, bearish for gold since it offers no
interest. The yield on the U.S. 10-year note was last seen up 1.4 basis points