Economists at Commerzbank analyze how Wednesday’s Fed meeting could impact Gold price.
Fed meeting in focus
How the Gold price develops in the coming weeks will be dictated to a considerable extent by the Fed’s further rate outlook following the expected rate hike.
If the Fed remains vague as regards its strategy for subsequent meetings, the market is likely to stick with its current rate hike expectations for now. This would preclude any price increase for the time being.
On the other hand, Gold is likely to gain and make a renewed bid for the July high if there are any clear indications that Wednesday’s rate hike will indeed be the last in the current cycle.