Gold Markets Continue to Consolidate Ahead of FOMC
Gold markets fell slightly during Wednesday’s trading session as we saw a lot of volatility coming and going due to the upcoming FOMC meeting. The world is hanging on to the results of the meeting, and perhaps more importantly, the press conference that followed. That being said, the world is hoping that Federal Reserve Chairman Jerome Powell decides to calm down on the hawkish tone, but he has the political problem of inflation facing the US economy. This will almost certainly come into play as traders might be disappointed. If so, the US dollar will almost certainly soar, wreaking havoc on commodity markets.
Gold Price Predictions Video 27.01.22
That being said, it should be noted that gold markets are very sensitive not only to the US dollar, but also to returns from America. Because of this, the market will likely continue to see a lot of tough trades, but given enough time, we will need to see some type of momentum to send this market in one direction or the other. Much will depend on how the markets react to whether or not Jerome Powell is hawkish or dovish enough, and quite frankly, I think the markets are likely to be disappointed. If he starts to stress inflation, gold might get a little boost at that point, but if the US dollar spikes drastically, that could work against him.