The Fed Reserve was supposed to deliver the monetary press release after a conference on Wednesday. The Fed Reserve finally released its press statement and it clearly depicted that the prices of gold will remain the same for the time being. Gold is back in its bullish mode and is expected to be the same by the prominent investors.
Gold basically remained supported on Thursday morning in London after the US Federal Open Committee (FOMC) on Wednesday kept the Federal Funds rate unchanged. The price of spot gold witnessed a little change from the previous close after rolling to a two-week high of $1,342.15 on Wednesday. The FOMC has kept interest rates at 0.25-0.5 percent, which however was expected widely but laid down the groundwork for an increase in the upcoming months.
The meet decided to come to an anonymous decision however there was a split in the votes as well. 3 members of the committee disagreed, preferring to raise rates now. The result however was opposite of this. The committee finally decided to keep the rates unchanged but left the possibility open for the rates to be changed in Q4.
The committee members strongly acknowledged in the post-meeting press conference that it was reasonable to wait to see more progress towards its objectives. The current situation is that only 14.5 percent of market participants and prominent gold traders anticipate a rate increase at the FOMC’s meeting to be held in November but the majority expects the rates to move in December.
On Wednesday, the spot gold price received a boost after the Bank of Japan maintained its interest rate and renovated its monetary stimulus program. The spot prices of gold are highly expected to go on a bullish mode in the upcoming month.
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