Gold Steady But Watching FOMC and EUR

Gold’s attention will turn to Wednesday’s release of Federal Open Market Committee meeting minutes and to Friday’s speech by Federal Reserve Chair Janet Yellen in Jackson Hole, Wyoming.  “Gold is historically sensitive to changes in monetary policy and expectations for changes in monetary policy. A perceivably dovish FOMC meeting minutes or speech by Ms. Yellen would be gold positive while a perceivably hawkish interpretation would be bullion negative, in our view. We expect a pick-up in gold volatility, as measured by the Gold ‘VIX,’ ahead of Ms. Yellen’s Jackson Hole speech,” HSBC says. Analysts at Brown Brothers Harriman say investors will look for any signs about winding down quantitative easing, the timing of the first rate hike and which instruments will be used to neutralize the excess reserves.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza