The recovery in gold prices from August lows is gaining momentum. On Wednesday, the precious metal has extended weekly gains to fresh mid-July highs marginally above $1,251 and holds in the positive territory, ex-pecting fresh short-term drivers.
It looks like gold is shining again, after a break of the aggressive bearish trend. The bullion’s appeal is rising due to a sell-off in the greenback as the American currency is on the defensive across the board amid the grow-ing doubts in the Fed’s ability to proceed with monetary tightening in 2019. In this context, today’s FOMC meet-ing will define further direction for the greenback, gold and global financial markets in general.
A potentially ‘dovish’ hike will depress the dollar even further. In this scenario, the precious metal could attract a more robust demand. However, the possible upside impetus will likely be limited against the backdrop of a positive reaction in stock markets. As such, the bullion may not make a clear break above the mentioned $1,250 barrier but in the longer term, it could further regain its attractiveness amid the increasing signs of slowing glob-al growth.
It looks like gold is shining again, after a break of the aggressive bearish trend. The bullion’s appeal is rising due to a sell-off in the greenback as the American currency is on the defensive across the board amid the grow-ing doubts in the Fed’s ability to proceed with monetary tightening in 2019. In this context, today’s FOMC meet-ing will define further direction for the greenback, gold and global financial markets in general.
A potentially ‘dovish’ hike will depress the dollar even further. In this scenario, the precious metal could attract a more robust demand. However, the possible upside impetus will likely be limited against the backdrop of a positive reaction in stock markets. As such, the bullion may not make a clear break above the mentioned $1,250 barrier but in the longer term, it could further regain its attractiveness amid the increasing signs of slowing glob-al growth.