All the content is provided for general information only and trade signals should not be construed as any form of regulated advice. It does not take into consideration your personal circumstances, including your investment objectives, risk profile, tax status, knowledge and understanding or financial situation. Past performance is no guarantee of future results.
Commentary
We still hold a neutral view on gold whilst the precious metal is below key resistance at $1750 as we await the FOMC minutes release later today.
The FOMC minutes could indicate whether the FED will continue to keep interest rates low despite fears of increased inflation due to the extent of quantitative easing since the beginning of the pandemic.
If the FOMC minutes suggest that interest rate hikes are more likely given current data especially with a strong labor market highlighted by payrolls coming in at 916K vs 647K forecast last Friday this could put downward pressure on gold prices.
However, we feel there is upside potential for Gold due to the continued impact of the pandemic on global economy despite the comparatively successful roll out of the covid vaccines in the US.