Gold Rises After Fed Holds Rate and Hints as Slower Pace of Hikes

September 22, 2016 Share Print 0

Gold futures aimed for a fourth-straight advance Thursday amid the Federal Reserve’s reluctance to lift interest rates and its emphasis on a gradual path toward normalizing monetary policy at its most recent meeting.

The yellow metal, and the broader metals complex, closed higher Wednesday and extended their price move in the after-hours session when the Fed left interest rates unchanged as was widely expected.

However, the Fed did indicate that it hoped to hike rates by the end of 2016, with a contingent of policy setters at the Federal Open Market Committee tilting toward raising rates sooner than later. The Fed voted 7 to 3 to keep rates steady, marking the largest number of dissenters since 2014.

Gold has firmed over recent sessions as currencies have seen choppy trade, including a weaker dollar, despite the Bank of Japan’s aggressive steps to fight deflation announced earlier Wednesday. The yen fell then ultimately rose against its U.S. counterpart.

via SOURCE

via MarketWatch

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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.