Gold Investors Focused On The Fed Meeting

Gold investors are waiting on the latest US Federal Reserve (Fed) meeting details, which are expected to be released on Wednesday.

Gold received support from the flat rate of bonds and the declining US dollar, while gold investors focused on the Fed meeting. The precious metal reached the highest level in recent weeks, with the US Treasury bond rate stabilizing and the weakening dollar. Gram gold, on the other hand, followed the rise in the USD/TL exchange rate and global gold prices. Gold investors focused on the most recent meeting to understand the details of the Fed's policy decisions. Fed Chairman Jerome Powell and other board members stated that although they expect a more rigorous economic recovery, they will implement an almost zero interest rate policy by 2023. The International Monetary Fund (IMF), revising its global economic growth outlook, also warned of the growing inequality between developed and less developed countries. Oanda Senior Market Analyst Jeffrey Halley said the following in his statement on the subject: “Gold is currently stealing a role from the US Treasury bond interest. The real test for gold will be if US Treasury bond yields rise sharply. If gold protects its gains in this scenario, my confidence in the safe haven will be further increased.” While the 10-year US Treasury bond yield remained flat at 1.66 percent, the EUR/USD rate dropped to 1.1872 with a loss of 0.04 percent. Gold stabilized over $ 1,700, following its first-quarter loss after 2018, as investors closely followed the global economic recovery and vaccine developments. Ounce gold is traded around $ 1,739, declining by 0.2 percent after rising to $ 1,745 in Tuesday's trading. Gram gold is around 455 TL, following the rise in USD/TL exchange rate and the global gold prices.