Gold prices hold steady as all eyes turn to the Fed [Video]
|Gold prices hovered near two-week highs on Wednesday as traders await the outcome of the U.S Federal Reserve's two-day policy meeting.
Since the Fed’s last policy meeting in January, a lot has changed. The U.S. Senate passed President Joe Biden’s massive $1.9 trillion stimulus bill. Treasury yields have surged to pre-pandemic levels and inflation has now taken over from COVID as the biggest risk to the market.
Earlier this month, Fed Chair Jerome Powell disappointed the markets by stressing that inflation was not a concern for the central bank, while ignoring questions about rising bond yields.
Higher yields are starting to sound alarm bells, as this is a very strong indicator that inflation is already creeping into the wider global economy.
The Fed has been largely ignoring the issue so far, which is why all eyes will be on the Fed Chair Jerome Powell as he holds his press conference after the central bank's interest rate announcement on Wednesday.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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