Gold prices held steady on Tuesday on positive sentiment surrounding the US central bank's decision not to raise interest rates this month.
The US Dollar Index (DXY) initially fell but is expected to fall further due to the Fed's tightening monetary policy. Regional banks in the United States are using credit filters, which can lead to a drop in economic activity. Disappointing economic data could lead to the Fed ending up raising rates. Surveys predict GDP growth in the second quarter will be less than 0.
The market predicts the Fed will keep interest rates at current levels at next week's monetary policy meeting with 85% probability.
The US Dollar Index (DXY) initially fell but is expected to fall further due to the Fed's tightening monetary policy. Regional banks in the United States are using credit filters, which can lead to a drop in economic activity. Disappointing economic data could lead to the Fed ending up raising rates. Surveys predict GDP growth in the second quarter will be less than 0.
The market predicts the Fed will keep interest rates at current levels at next week's monetary policy meeting with 85% probability.
Comment:
Market participants are struggling to predict the upcoming monetary policy decision from the US Federal Reserve, as inflation declines at a rather slow pace.
