Daily Market Analysis and Forex News
XAUUSD trading around 7-month lows, below $1900
Gold prices continue on the strong downward momentum, before paring some losses ahead of the weekend
The precious metal briefly touched $1857, its lowest intraday price since March, amid the uncertainty surrounding the future Fed’s interest rate decision
At the moment the market expects a 17.3% & 34.5% chance of a rate hike in November and December respectively.
All eyes are now pinned towards today’s Personal Consumption Expenditures index (PCE) reading – Fed’s preferred way to measure the inflation.
A higher-than-expected (>3.5% YoY) number may force the Fed to sustain the elevated interest rates for longer, adding more pressure on a zero-yielding gold.
On the flip side of the coin, a decrease in inflation may signal a pause in hikes, thus potentially reigniting market’s interest in yellow metal.