The eyes are turned to the FED

Economists expect a final rate hike while financial markets do not expect more for 2019. According to the chosen direction, this decision should strongly influence the gold and the US dollar price.

Indeed, a historical analysis shows that gold rose significantly when the US Federal Reserve shifted from a policy of monetary tightening to a neutral position, even if the impact is not felt directly.

For gold investors, the gold price (in USD) and the EURUSD prices are two of the most important factors. They determine the price and trends of gold. The monetary policy determined by the FED is therefore very important to define the future performance of the yellow metal.

The decision and expectations will be announced by press release this Wednesday at 19h.

Source: WGC