Will the FOMC drive gold prices higher or lower? [Video]

Gold prices are currently engaged in a tug-of-war as traders await a fresh fundamental spark to ignite gold’s next big move.

The biggest market-moving event, that traders will be closely monitoring this week – is the outcome of the U.S Federal Reserve's two-day policy meeting, which is due to end on Wednesday, 16 September.

Last month, the Fed announced that the central bank’s inflation target could exceed 2%, which would drive inflation slightly higher, whilst keeping interest rates lower for longer.

There is a huge focus on this event, as it’s the Fed’s last meeting prior to the U.S Presidential Election.

The Fed’s two-day meeting will be scrutinized for clues on how the central bank plans to hold down rates while aiming to boost inflation. The Fed is also expected to revise its economic and interest rate outlook, including forecasts for 2023 for the first time.

Gold prices are currently trading in a tight range, which ultimately indicates a big move is on the horizon. The only question now, is which way.

Where are prices heading next? Watch The Gold & Silver Club Commodity Report now with Phil Carr for the latest price forecasts and predictions: