The gold market could be disappointed come the FOMC meeting

New York (Oct 28)  With gold prices trading above the $1,500 an ounce level, the precious metals market could be disappointed come the Federal Reserve rate announcement on Wednesday, according to TD Securities. “Precious metals have held firm given the surge in equities and the Brexit extension, and are likely to trade in a holding pattern heading into key risk events this week. With prices back above $1,500/oz the gold market may be set up for disappointment heading into the FOMC, where we expect a somewhat hawkish cut,” strategists at TD Securities write. Lack of dovishness in the tone of the Federal Reserve could put pressure on gold, they add. “Our macro team is looking for the committee to communicate patience in deciding future policy moves as they assess the impact of the three cuts they have already delivered and look for the Fed to temporarily pause before resuming rate cuts in Q1 2020, which could see the yellow metal look for the lower bound of the range in the near term.”

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