fxs_header_sponsor_anchor

News

Gold Price Forecast: XAUUSD to rebound on a cautious Fed – Commerzbank

Gold Price is on standby ahead of the Federal Reserve Interest Rate Decision. A cautious Fed could trigger a correction higher in the yellow metal, economists at Commerzbank report.

Another sharp increase in jobs created could weigh on gold 

“A rate hike of 50 basis points is generally expected and is fully priced in according to the Fed Fund Futures. It will therefore be almost more interesting to hear what Fed Chair Powell has to say about the bank’s future monetary policy. If he sounds very hawkish and indicates that other major rate hikes will be made at the following Fed meetings, this could push the US dollar and bond yields further up, which would presumably depress XAUUSD.” 

“If Powell were to sound more cautious, the gold price would probably profit and could recoup some of the losses it has suffered in the past few days.” 

“The ADP labour market report will be published in the US this afternoon ahead of the Fed interest rate decision. The Bloomberg consensus anticipates another sharp increase in the number of jobs created. This could weigh on the gold price this afternoon.”

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.