Precious Metals eye FOMC meet, more influenced by external markets
WASHINGTON (Sept 15) Gold and silver are glued to FOMC meet outcome on September 17th even as recent easing of prices taking cues from external markets, Barclays said.
Easing of geo-political tensions and likely Fed tapering have already weakened prospects for gold. Higher equities as evidenced by rise n S&P Index, negative corelation between 10 year US Treasury yields and US dollar continue to have downward impact on prices.
Gold ETP outflows have slowed recently, which could aid prices, but any sustained support for prices from ETP flows would have to come via further stabilisation and positive momentum in ETP flows.
"The key focus for prices will be the FOMC meeting next week, where our economists continue to expect tapering to be announced despite the weaker-than-expected US non farm payrolls data from last week, which, in turn, exposes prices to downside risk, in our view," Barclays said.
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