What’s Next For Gold Prices After Fed Skips Another Rate Hike?

Analyzing October’s Record Gains and Predicting the Precious Metal’s Future

After posting its biggest monthly gain since November last year, Gold prices have pulled back on routine profit-taking as traders square up windfall profits – ready to capitalize on the precious metals next big move.

Gold closed October trading just below $2,000 an ounce. The precious metal has been on an unstoppable run, rallying from near the $1,800 level at the beginning of October to a six-month high of $2,009 an ounce – notching up an impressive gain of over 21%, from this time last year.

The bullish momentum has also split over into Gold priced in other currencies such as British Pounds, Euros, Australian Dollars, Japanese Yen and Chinese Yuan – sending prices skyrocketing to all-time record highs.

There is no denying that Gold is everyone’s favourite trade once again and that trend is set to continue throughout the rest of 2023.

Federal Reserve Holds Steady: Interest Rates Unchanged Amidst Economic Uncertainties

Looking ahead, this week is all about the macroeconomics with trader’s attention firmly focused on a string of hotly anticipated interest rate decisions from the Federal Reserve and the Bank of England, all topped off with the closely watched U.S Employment Report on Friday.

Taking front and centre stage was the outcome of the Federal Reserve’s Monetary Policy Meeting on Wednesday.

In the lead-up to this week’s policy meeting, Federal Reserve Chairman Jerome Powell conceded that the U.S central bank’s already difficult job has now become even trickier as it attempts to maintain financial stability, while bringing inflation down to its 2% target..

“A range of uncertainties, both old and new, complicate our task of balancing the risk of tightening monetary policy too much against the risk of tightening too little” – Jerome Powell said in a speech at the Economic Club of New York.

Faced with a barrage of unpredictable challenges from escalating geopolitical conflict in the Middle East, tightening Oil supply, which could reignite inflationary pressures to growing concerns of a potential credit risk event and of course the possibility of U.S government shutdown in mid-November – the Federal Reserve held its benchmark interest rate at a 22-year high.

The Federal Open Market Committee skipped an interest rate increase again this month and left rates unchanged at the current range of 5.25% to 5.5%.

This move marks the clearest sign yet that officials think the risks confronting the global economy have become much more complex.

Gold Price Forecast

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: