Gold struggles for direction ahead of Federal Reserve policy verdict
Gold struggles for direction ahead of Federal Reserve policy verdict
Market narrative
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Gold struggles for direction ahead of Federal Reserve policy verdict
Forex
EUR/USD Price Forecast: Struggling below 1.1400 with all eyes on the Fed
AUD/USD outlook: Australian Dollar slides on softer than expected inflation
EUR/GBP Price Forecast: Eases from 0.8575 resistance with the bullish bias intact
Gold and silver continue to consolidate above major historical support zones as markets await the Federal Reserve's policy decision. While gold is holding above a decade-long trendline dating back to 2016, silver is facing a multi-decade support zone originating from the 1980 highs.
Gold: The Fed will lead the way
The US dollar has retreated as traders square positions ahead of the FOMC meeting results announcement. The futures market puts the odds of a Fed rate hike at 1 in 3 following the 28–29 July meeting.
TL;DR: With geopolitical risk fading and Brent retreated sharply this week, Gold has settled into a narrow range above $4,000 — leaving today's FOMC vote breakdown, not the headline rate decision, as the market's next major catalyst.
Gold awaits Fed decision as geopolitical risks keep markets cautious
EUR/GBP Price Forecast: Eases from 0.8575 resistance with the bullish bias intact
GBP/USD at month's lows: The outlook remains weak
Euro: Seen back toward 1.15 against US Dollar – ING
GBP/USD continued to consolidate at 1.3283 on Wednesday. The British pound hit a near one-month low in the previous session as investors monitored developments in the Middle East, while the dollar drew support from expectations that the Federal Reserve could raise rates today.
Silver price today: Silver rises, according to FXStreet data
GBP/USD Price Forecast: Near-term bias remains bearish ahead of Fed-BoE policy
The dollar's next move hinges on tonight's Fed decision, and this time markets genuinely don't know what to expect. While economists still lean toward a hold—with CME FedWatch odds sitting near 68.5% for no change—Kevin Warsh's hawkish rhetoric on having “no tolerance” for inflation, paired with growing internal FOMC support for a hike, has pushed hike odds up sharply from just 18% two weeks ago to over 30% today.
Silver Price Forecasts: XAG/USD returns above $58.00 as US Dollar weakens
EURGBP (Sterling) tests critical top EURGBP (Sterling) was left licking its wounds after the Euro found another higher high on its way to another peak. The rally continued after a break above 0.8550 forced sellers to bail out.
Euro: Softer Fed signals may lift EUR against US Dollar – Commerzbank
Gold traders worry about today's FOMC rate decision [Video]