Will The Fed Drive Gold Prices Higher or Lower?Gold prices are currently moving sideways in a tight range as traders await a fresh fundamental spark to ignite the precious metals next big move.
The key event, that traders will be closely watching this week – is the outcome of the U.S Federal Reserve’s two-day policy meeting, which is due to end on Wednesday, 27 January.
There is a huge focus on this event, as it’s the Fed’s first policy meeting under a ‘Blue Wave’ Biden administration with Janet Yellen as the new Treasury Secretary.
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During her confirmation hearing last week, Yellen urged policymakers to “act big” on coronavirus stimulus, adding that the benefits outweigh the costs of a higher debt burden. Traders expect the Fed will emphasize that the economy is still struggling and they are prepared to do whatever it takes to support the recovery. However as we know, the Fed always has the potential to surprise.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: