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Bullion Range Trading Ahead Of Fed Decision

GOLD

Gold prices have been steady during the APAC session with trading in a range of less than $5. They fell 0.4% on Monday after briefly breaking above the $2000 level to reach an intraday high of $2006.05/oz. Gold is currently trading around $1981.80. The USD index is down slightly.

  • Bullion is in a holding pattern ahead of the Fed’s rate decision on Wednesday. It is expected to hike rates another 25bp and then possibly signal that it will pause (see MNI Fed Preview: May 2023). A more dovish statement would be good for gold prices.
  • A lack of agreement on increasing the US debt ceiling may also be providing some support to gold through safe haven flows. President Biden has invited congressional leaders to a meeting on May 9.
  • Later today US JOLTS job openings and factory orders for March print. Also April manufacturing PMIs in Europe and preliminary April euro area CPI data are released.

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