FOMC is widely expected to leave its policy rate unchanged. A hawkish Fed policy outlook could cap gold's upside. XAUUSD could target $1,870 in case US T-bond yields turn south on a dovish Fed surprise. US FX Forex Preview
. Before testing $1,850, however, the pair seems to have lost its bullish momentum, with investors remaining on the sidelines ahead of the US Federal Reserve’s policy announcements on Wednesday, January 26.
Gold is likely to extend its rally on a dovish Fed outcome, which should cause US Treasury bond yields to turn south as well.It shouldn’t come as a surprise if the Fed were to communicate that a 25 basis points rate hike in March is imminent. The CME Group FedWatch Tool shows that markets are pricing only a 10% chance of the Fed leaving its policy rate unchanged in March.
On the flip side, $1,830 aligns as first technical support. With a daily close below that level on a hawkish Fed policy outlook, gold could slide toward $1,810 and $1,800 .
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stocks climb back after steep slide on Fed, Ukraine jittersA volatile day on Wall Street ended Monday with stocks notching modest gains after climbing back from a steep slide that had knocked more than 1,200 points off the Dow Jones Industrial Average.
Read more »
Stocks climb back after steep slide on Fed, Ukraine jittersStocks finished a volatile day slightly higher on Monday after reversing a steep slide caused by uncertainty over inflation-fighting measures from the Federal Reserve and the possibility of conflict between Russia and Ukraine. A late-day buying spree pushed the benchmark S&P 500 index to a 0.3% gain after pulling it out of so-called correction territory — a drop of 10% or more from its recent high. “We’re in this wait-and-see mode, which is almost the most uncomfortable place to be, so I think the market is really grappling with that,” said Lindsey Bell, chief markets and money strategist at Ally Invest.
Read more »
Treasury yields climb, with Fed meeting and geopolitical tensions in focusU.S. Treasury yields climbed on Tuesday morning, with investors focused on the Federal Reserve's policy meeting and geopolitical tensions.
Read more »
Forex Today: Stocks Tumble to Correction on FedGlobal Stocks Falling Again After Yesterday\u2019s Rebound; Singapore Tightens Monetary Policy; Australian Inflation Exceeds Expectations
Read more »
EUR/USD Forex Signal: US Consumer Confidence, Fed in FocusThe EUR/USD pair moved slightly below an important support level on Monday as investors reflected on the latest economic data and rising tensions.
Read more »
Global stocks mixed as investors worry about Russia-Ukraine tensions and upcoming Fed plansGlobal stocks were mixed Tuesday, after a dramatically volatile day on Wall Street fueled by concerns over the US Federal Reserve's plans to hike interest rates and tensions in Ukraine.
Read more »