Expert Analysis: Gold's Surge Raised Speculation Ahead of Key Fed Decision

Wednesday, 20 March 2024, 14:19

Gold spikes to a five-day high, showing a sudden $10 surge amid possible dovish bets and central bank flows. USD weakness emerges post strong bids as market considers weaker CPI readings from Canada and the UK, hinting at lower global pressures ahead of critical US CPI report. Expert predicts possible market dynamics post-Fed decision.
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Expert Analysis: Gold's Surge Raised Speculation Ahead of Key Fed Decision

Gold springs to life ahead of the Fed decision

Gold has quickly risen to a five-day high with a $10 pop in the last few minutes.

There doesn't appear to be a catalyst for the sudden buying in a market that's otherwise settled ahead of the 2 pm ET FOMC decision.

This might be a bet on a more-dovish-than-expected FOMC or central bank flows in a thinner market. There is also some minor USD weakness creeping in after some earlier strong bids.

One thing the market may be weighing are the weaker CPI readings from both Canada and the UK in the past 24 hours. That could be an indication of lower global pressures and a sign that the US CPI report has been sending false signals.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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