Gold Awaits FOMC Outcome
Gold prices (XAU/USD) held steady on Wednesday, trading near $3,330 per troy ounce in the European session, after previously touching a three-week low of $3,301 on Monday. Although price movements remained within a narrow range of $3,300–$3,330, the market is awaiting the outcome of the Federal Reserve's (The Fed) monetary policy meeting.
The positive market sentiment (risk-on) due to easing global trade tensions has limited gold's appeal as a safe haven. However, the weakening US dollar and falling US government bond yields have provided some support for gold prices in the short term.
Several trade deals, such as the one between the US and the EU, as well as the initial agreement with Japan, have raised hopes that the global trade conflict could ease. The US is also exploring agreements with Canada, South Korea, and China. Although negotiations with China have not yet resulted in an official extension of the tariff truce that expired on August 12, the tone of the talks is considered constructive. The market is currently awaiting President Trump's final decision on this matter.
The main focus remains on the Fed's decision and Chairman Jerome Powell's press conference tonight. Investors are hoping for clues on the future direction of interest rates, which will significantly influence the movement of gold and other financial assets. (ayu)
Source: Newsmaker.id
