The world price of gold declines before fed meeting
Gold trading negatively at the beginning of the week, like other precious metals such as silver, palladium, copper and platinum, as investors awaited two-day Federal reserve meeting which begins on Tuesday. Traders are wondering about how that will offer the FOMC economic forecast, because the rate change is unlikely.
The dollar index is trading sideways at the level of 97.50, putting pressure on the metals. Gold extends its deviation from 1358.20, the highest since April 11, 2018, as the week opened with a fall of 0.60% to 1334.20. Silver is trading in the negative on the second day, and after the rebound from the level of 15.10 on Friday, it falls on Monday, up to 14.80.
Gold edges lower on Monday, continuing the trend from last week. The price of the metal dropped to the level of 2.6000. Palladium traded in a consolidative mode around 1462, falling for the first time in the last eight days. Platinum has accelerated its decline from 820, declining for the second trading day in a row, and now she’s testing area 790.00, minimums may 30. Below, platinum is facing a critical support in 780.00.
The market focused on the FOMC meeting, which will take place on Tuesday and Wednesday this week. Whether it’s lower rates or not? It is a question. However, this is not the only thing that traders will notice. Even if there is a decrease in rates, the changes to the report and the economic evaluation, any comments from officials indicate the intentions of the FOMC regarding interest rate reduction, and it will move the market.
In addition to the fed, the Bank of Japan and Bank of England scheduled meeting on monetary policy, and they will have their influence on the fluctuations of currencies including the US dollar, and hence, metals such as gold.
Gold increases the rebound from 14-month lows on the daily charts, but on Monday 17 June gold traded in the red after reaching highs from April 2018 at the level of 1358. At the moment, the decline has stopped, but it could extend the decline to 1330, where waiting for the first support. However, the trend remains positive and the movement on Monday, it seems, is a correction.
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