Gold has managed to recover its prices after a multi-week low. Late in the last week, the prices of this precious metal dropped to its lowest since August 31. The Federal Reserve is set to start its two-day meeting and after that will issue a monetary statement.
The Federal Reserve is going to do this after weeks of speculation and conjecture. The team will issue the statement most probably on Wednesday afternoon. Most of the market participants are not expecting a rise in the rates in September although the probability of this taking place in December has increased. This increase in the probability came due to the better-than-expected inflation data provided on last Friday.
The investors also expect some more stimulus measures to struggle weak inflation and non-existent growth. The Bank of Japan is going to hold a meeting regarding the same. According to the market experts everybody is looking at the Fed meet this week but the initial facilitator will be the BOJ announcement which is coming out soon. As per economists and investors, market is completely unprepared to expect a rate rise in September only. However, it might witness a sudden change in the Q4 2016.
Holdings in the exchange-traded funds (ETFs) have also raised to10.5 tones, suggesting that investors do not forestall a hawkish Fed statement after weeks of mixed data. It is anticipated that prices will get more edgy after the decision of Wednesday from The Bank of Japan and the FOMC on rates and monetary policy.
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