Will the FOMC Minutes drive Gold prices higher or lower? [Video]
|After an explosive start to November, Gold prices pulled back on routine profit-taking as trader’s attention shifts to the minutes of the Federal Reserve’s latest monetary policy meeting.
Once again, these big market moves have presented savvy traders with a series of highly lucrative opportunities to capitalize on this month’s macro-driven rally as well as the huge price reversal that has subsequently followed.
Looking ahead, all eyes will be on the Federal Reserve's November Monetary Policy Meeting Minutes, due for release on Wednesday.
The Federal Reserve raised interest rates by a whopping 75 basis points for the fourth straight time this month, in accordance with Fed Chair Jerome Powell’s relentless “hike, hike, hike” strategy. For most of this year, the Federal Reserve has been aggressively raising interest rates, bringing their target benchmark rate to a range of 3.75% to 4%.
There are now signs that some members of the FOMC are questioning Powell’s aggressive approach, with comments hinting at a slowing in the pace of tightening. In recent weeks, several FOMC officials have signalled they may consider a 50 basis-point hike at their next meeting in mid-December, with the final decision depending on what happens with the economy.
The FOMC Meeting minutes will be highly scrutinized by traders for fresh clues about the size of the Fed’s next interest rate hike in December – which as we know, always has the potential to move the markets significantly!
Right now, Gold prices are trading in a narrow range, which ultimately indicates a big move is on the horizon. The only question now, is which way.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
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