Gold Price Forecast: Having failed to resist above the $1,800 mark, Gold price is extending the previous decline this Thursday, as the United States Dollar (USD) pauses its sell-off alongside the US Treasury bond yields. Investors assess the December US Federal Reserve (Fed) policy decision and Chair Jerome Powell’s comments.
Next week, the FOMC will have its two-day meeting. Market participants expect a 50 basis points rate hike. Analysts at Danske Bank continue to expect a hawkish message regarding the policy stance in 2023. They think the recent easing in financial conditions is premature, and further hikes will be needed.
“The recent Gold price rally was triggered by softer-than-expected US inflation for October. However, we believe the market reaction to the latest inflation print was exaggerated as inflation remains near 7.7%, which is well above the central bank’s target of 2%. Further, the month-on-month increase was still 0.4% for both September and October.”
The US Federal Reserve’s Summary of Economic Projections, the so-called dot plot, revealed on Wednesday that officials’ median view of the Fed’s policy rate at the end of 2023 stands at 4.6%, compared to 3.8% in June’s dot plot.
FOMC Forecast Today: Expectations for what the Fed will do at its next meeting have been on a bit of a rollercoaster. This has created some fluctuations in the dollar, as well as the stock market. But now that Fed officials are sitting down for the two-day policy rate decision, it seems like economists are finally coming to some kind of agreement on what to expect tomorrow.
फेडरल रिजर्व के अधिकारियों को अगले सप्ताह पूर्ण प्रतिशत अंक तक दरों में वृद्धि के कारण मिल सकते हैं यदि वे पर्याप्त कठिन दिखने का निर्णय लेते हैं, हालांकि आधार मामला अभी भी 75 आधार अंकों की तरह दिखता है।