Gold is Stable But Market Moving Events Are Coming

Jon Banking, Blogosphere, Economy, Fiscal Policies, Gold, Government, Market Commentary, Precious Metals

Guest post from James Broth:
Gold dipped slightly as the new week get underway after breaking down below the important support level of $1,265 last Friday. The main reason behind last week’s decline in gold prices was that many investors exited gold investments to stay on the sidelines on rumors that President Trump was set to announce the next Fed chair. News concerning the Federal Reserve often affects gold prices because the Fed technically determines how the USD trade in the forex markets and gold is priced in USD. This piece examines how economic and forex developments could provide head and tailwinds for the yellow metal as the year draws a curtain.
The new week is data packed
Many investors buy gold because of its inherent stability; at least, in relation to other assets such as stocks. However, the underlying fundamentals of gold stability will be put to the test as different news of economic importance hit the newsstands. The economic calendar shows that the U. S. Federal Reserve will release the customary policy statement following its two-day meeting on Wednesday. The policy statement will provide insights into the Fed’s plan for interest rates going forward.

This post was published at Deviant Investor on November 3, 2017.