Commodities
Gold Price Volatility Ahead of Federal Reserve Decision
The price of gold is attempting to break above $4,300 early Wednesday as traders await the Federal Reserve's monetary policy decision and outlook.
The Fed is widely expected to raise benchmark interest rates by 25 basis points (bps) to 3.75%-4% on Wednesday, with a 92% probability suggested by the CME FedWatch tool.
Traders will focus on the Fed's signals for future rate hikes, including the Summary of Economic Projections (SEP), the Dot Plot, and language in the policy statement.
A hawkish Fed outlook could keep the US Dollar near two-week highs against major currencies and put pressure on gold, while a dovish signal might weaken the dollar and support gold.