The Federal Reserve provided an upbeat appraisal of the economy when it concluded its two-day meeting on November 1st, bolstering expectations for fresh action on interest rates. Fed fund futures currently indicate a 91.00% probability that the Central Bank will adjust rates again in December. Upcoming minutes due for release on Wednesday could shed more light on the Fed’s views of inflation, which has been stubbornly low despite recent signs of a pick-up. Adding to market volatility is Fed Chair Janet Yellen’s announcement that she would resign from the Board of Governors once Jerome Powell is confirmed as her replacement. The fact that Yellen has now formalized her decision to leave has somewhat increased the level of policy uncertainty from an investor-standpoint, fuelling haven demand. XAUUSD has reversed higher to $1,280.00 per troy ounce after tumbling -1.40% on Monday in its biggest one-day percentage fall since September 11th.
Gold Rebounds from Sharp Losses
Daily Analysis - 21/11/2017