It is Federal Reserve decisionday, and the precious metals markets are widely expecting the US central bank to keep rates unchanged, TDS analysts note. The recent US Consumer Price Index data, which came in softer than expected, could lead Fed Chairman Jerome Powell to sound more optimistic in his remarks later on Wednesday, a scenario thatwould be positive for Gold, they say.
For the precious metals market, this outcome is baked into the cake, particularly as Fed pricing remains tighter than the Fed guidance itself.” “Given the outlook will remain extremely data dependent, it is likely that Gold investors continue to watch for a weakening trend in data before the macro cohort steps back into the market. In this sense, the latest CPI data coming in below expectations has given the yellow metal a boost.