Gold, Crude Oil Outlook: Will FOMC Meeting Catalyze Price Volatility?
GOLD PRICE OUTLOOK:
Gold prices extended lower despite a weakening US Dollar, reflecting weak investor appetite
The FOMC meeting will be eyed by traders for clues about a possible twist in monetary policy
WTI prices are underpinned by a larger-than-expected draw in crude inventory, weaker US Dollar
Today’s FOMC meeting is probably the most important macro event for traders around the world. Market participants are eyeing an update from Jerome Powell about the central bank’s view of the economic outlook, fiscal stimulus as well as clues about future tapering. In view of deteriorating labor market conditions and viral waves in winter, the Fed’s monetary policy is likely to remain accommodative, which could help to cushion the downside for gold prices.