Gold Markets Continue Consolidation Ahead of the FOMC
Gold markets have dropped a bit during the course of the trading session on Wednesday as we have seen a lot of volatility going back and forth due to the FOMC meeting coming. The world is hanging on the results of the meeting, and perhaps more importantly, the press conference afterward. That being said, the world is hoping that Federal Reserve Chairman Jerome Powell decides to chill out when it comes to the hawkish tone, but he has the political problem of inflation facing the US economy. This almost certainly will come into play as traders might be disappointed. If they are, then the US dollar will almost certainly spike, causing havoc in the commodities markets.
Gold Price Predictions Video 27.01.22
That being said, it is worth noting that the gold markets are highly sensitive to not only the US dollar, but also the yields coming out of America. Because of this, the market is likely to continue seeing a lot of difficult trading but given enough time we are going to have to see some type of momentum to send this market in one direction or the other. A lot of this is going to come down to how the markets react to whether or not Jerome Powell is hawkish or dovish enough, and quite frankly I think that the markets are probably going to be disappointed. If he starts harping on inflation, gold could get a bit of a boost at that point, but if the US dollar spikes drastically, that could work against it.
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