Gold Price Visits No-Man's Land

New York (Sept 26)  For months gold has been a resident of no-man’s land, showing no desire to leave the walking dead. Today the FOMC announces its decision on interest rates, and the Street has already priced in another rate hike.

The actual announcement will be no surprise, but what the Street will be waiting for is the statement that Chair Powell will have when explaining the Fed’s decision. The equity markets appear to be saying that the Fed will hike but will remain dovish.

Considering gold has done nothing for months, a sudden change in the Fed’s policy could be just the ticket for gold to break out of this range to the upside. We see very little the Fed can do today to hurt the price of gold. We think there is a better chance that the metals could see an upside surprise.

KitcoNews