Gold prices are rising ahead of the Federal Reserve’s decisions

Mohammed Abdelkhalik
March 16, 2021
gold prices

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Gold Price Outlook – 17th March 2021

Gold prices rose during the commodities trading session today in the European market, to trade again near their two-week highs recorded earlier in the last session.

The investors are waiting for the decisions of the Federal Reserve at the conclusion of today’s monetary policy meeting, which is supposed to address concerns about inflation and the US bond market.

Gold prices rose from level 1700$

Gold rose during immediate transactions by about 0.4% until 08:50 GMT, trading the price of an ounce around the level of 1737.91 US dollars, compared to the opening level at 1731.35 dollars, and reached early in the session the lowest price at 1729.65 dollars an ounce.

In US futures trading, gold rose 0.3% to $ 1735.40 an ounce.

In terms of yesterday’s trading, the precious yellow metal “gold” lost 0.1% with noticeable sales activity aimed at reaping profits after it achieved earlier in the session at its levels in two weeks at 1741.08 dollars an ounce.

XAUUSD chart - 16th March 2021

Regarding other precious metals trades, silver fell by 0.2% to the level of 25.90 US dollars an ounce, and platinum also lost 0.4% at 1207.56 dollars, while palladium fell 0.3% to 2490.16 dollars, giving up its highest levels in a year at 2520.31 dollars an ounce.

Federal Reserve decisions

Later on Wednesday, markets are looking forward to the decisions of the Federal Reserve Board (the US Central Bank) at the end of its regular meeting, which has been extended since yesterday, in order to obtain more clues about the future policies of the bank during the next three years, amid market hopes that the Federal Reserve will expand the asset purchase program.

Most market expectations indicate that the board will keep interest rates steady at an all-time low, between zero and 0.25%.

As we know, the easing of monetary policy adds more pressure on the yields of US bonds issued by the government and is beneficial for gold that does not yield an income.

On the other hand, Germany, France, and Italy suspended vaccination campaigns against the Coronavirus using the vaccine developed by the “AstraZeneca” company, in partnership with the University of Oxford, after the emergence of cases of blood clots after using the vaccine.

The World Health Organization said that there is no evidence of incidents involving blood clots due to the Oxford-AstraZeneca vaccine.

These developments have led to increased concerns about the slow pace of vaccination against Coronavirus in Europe, which may lead to a delay in an economic recovery in one of the regions most affected by the viral pandemic.

Later in the day, the European Medicines Control Authority will release the results of investigations into incidents of bleeding, blood clots, and low platelet counts in recipients of the AstraZeneca vaccine.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.