Gold steady ahead of ECB meeting Thursday and FOMC meeting next week
Gold futures remarked Key $1,500 oz Wednesday, as traders weighed President Trump’s latest Tweet calling for the Fed to cut interest rates down to Zero, ahead of the FOMC’s meeting next week.
Prices for the precious Yellow metal traded between modest losses and gainrs early Wednesday, after 4 straight sessions of profit taking..
President Trump Tweeted Wednesday morning that the “Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt.” The FOMC will meet next week and it’s widely expected to announce an interest-rate cut Wednesday.
Another bench mark has been set up by the President and it will be interesting how the Fed is going to reply to this when they will meet next week, we wait, we see.
Gold for December delivery GCZ19, +0.13% on COMEX tacked on $4, or 0.3%, to settle at $1,503.20 oz, reclaiming the round psych mark at $1,500 oz after settling below it Tuesday for the 1st time since 6 August.
Gold is down around 1% so far this week and 2% since the end of August
The market could see a delay in the European Central Bank’s QE (quantitative easing) launch.
Investors expect the ECB to deliver an interest rate cut and potentially other measures when policy makers meet Thursday.
Note: The gold-silver ratio has been falling, making silver more appealing or less attractive to the sellers in the short term.