Ahead of the Federal Reserve interest rate decision, gold maintains slight fluctuations
The price of gold (XAU/USD) has remained weak in the Asian early session this Tuesday, fluctuating around $4195 per ounce. The market generally expects the Federal Reserve to announce a 25 basis point rate cut at this week's meeting, but more importantly, whether the monetary policy statement and dot plot will release hawkish signals. If the Federal Reserve hints that the pace of future rate cuts will be limited, it could drive the dollar to rebound temporarily, thereby putting pressure on gold priced in dollars. Market data shows that investor bets on this rate cut have significantly increased. According to the latest tool monitoring, the probability of a rate cut has quickly risen from 66% last month to the current 90%, indicating a high expectation for an easing path in the market. However, if the Federal Reserve emphasizes economic resilience or inflation stickiness while cutting rates, resulting in what is known as a 'hawkish rate cut', the short-term trend for gold may still remain weak.
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