Market recap last week
The dollar could find some support and demand into the FOMC this week while the price of the precious metal was trodden on by bears that took their cues from the trade war angst that has heated up over the past few sessions, supporting the greenback. However, that didn't stop Wall Street and the benchmarks continuing with their impressive performance, underscoring optimism about the U.S. economy. However, as we move through the week, things will fire up on the scheduled FOMC while ears will be left on the ground for any implications resulting from the Chinese not playing dancing to Trump's song in the tariff war.
Forecast for this week
Since the rate hike has already been factored into the dollar and gold prices, traders will be paying more attention to any information that shows how much more monetary tightening will be necessary to keep the economy (and inflation) healthy.
Gold could be supported if the Fed appears to be too “dovish” in its assessment of the need for additional rate hikes. In other words if it drops the word “accommodative” from its monetary policy statement.
We are looking ahead of this week for FOMC meeting will be the catastrophe on gold price. Traders and investors are paying more attention to this event.
(Source: tradingview.com)
(Source: tradingview.com)
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