Gold hits record high of 3,703 ahead of Fed decision
Gold price advances during the North American session after hitting a record high of $3,703 on Tuesday, poised to continue to trend up as traders await the Federal Reserve’s (Fed) monetary policy decision on Wednesday. At the time of writing, XAU/USD trades at $3,689, up 0.27%.
The yellow metal extended its gains as traders shrugged off good economic data from the United States (US), which reaffirmed that American households' spending remains solid, following August’s Retail Sales report. Additionally, Industrial Production improvement in August challenges the markets’ narrative that the economy is slowing down and that rate cuts are needed.
Despite this, the latest jobs data is to blame as the main reason for the Fed Chair Jerome Powell's dovish pivot at the Jackson Hole Symposium. In addition to the monetary policy decision, the Federal Open Market Committee (FOMC) will reveal the Summary of Economic Projections (SEP), in which lies the infamous dot plot” used by Fed officials to depict their stance on the path of interest rates.
Regarding geopolitics and trade, talks between China and the US seem to progress, while the US President Donald Trump said that he will meet his Chinese counterpart Xi Jinping on Friday.
Source: FXstreet
