In anticipation of the post-FOMC meeting press conference and the Fed’s monetary policy statement, uncertainty has caused gold to recover from four straight days of losses and move over the 100-day SMA. The precious metal is trading at $1964.99 per ounce at the time of writing.
The US released strong data for the housing and manufacturing sectors, and the gold index saw rises on Tuesday. American yields are fluctuating, with the 10-year rate slightly climbing to 3.88% and the 2-year rate indicating a 1% fall.
For the months of May and July, the Richmond Fed Manufacturing Index and Housing Price Index, respectively, exceeded expectations. The Fed’s expectations for tightening are unchanged.
Although the CME FedWatch tool anticipates a 25-basis point increase on Wednesday, the markets are unsure about what will happen after July. The messages from Jerome Powell and the announcement on monetary policy stance will set the pace of bond markets, fueling volatility on non-yielding metals.