Gold Slides Lower After a Less Dovish Than Expected Fed Statement
Early on Thursday, gold prices fell sharply below $1,500 and are currently trading steady. At the time of writing, GOLD prices are trading at a little above $1,495.
After trading cautiously ahead of the Fed meeting, gold turned bearish after the Fed sounded less dovish than expected about its monetary policy. The 0.25% rate cut came in as expected and as markets had already priced in the rate cut, causing the decline in gold prices.
On Wednesday, gold prices had climbed higher as markets were expecting the Fed to sound extremely dovish. Since the meeting, prices have slipped as markets readjusted their expectations for the US economy based on Fed Chair Powell’s comments.
Later today, the Swiss National Bank and the Bank of England are also expected to hold their meetings and shed light on their monetary policies. However, this may have a muted impact on gold as both central banks are expected to hold their interest rates steady.
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