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Holding Pattern Ahead Of FOMC Meeting

GOLD

Gold is slightly lower in the Asia-Pac session, after closing 0.2% higher at $2037 on Tuesday.

  • Bullion, like most markets, remains in a holding pattern ahead of today’s FOMC policy meeting, which may steer on when the US central bank will start easing policy.
  • Fed speakers have been in a blackout ahead of this week’s FOMC meeting.
  • The market is currently assigning around a 40% chance to a 25bp rate cut in March. This compares to the near 70% chance seen a couple of weeks ago.
  • Lower interest rates are typically positive for non-interest-bearing gold.

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