After the FOMC statement was unveiled yesterday, the dollar index held its ground firmly above the pivotal $105 level, putting pressure on gold prices.
In the aftermath of the FOMC statement unveiled yesterday, financial markets fluctuated as investors dissected the nuanced signals emanating from the Fed‘s leadership regarding its policy outlook. The dollar index held its ground firmly above the pivotal $105 level, exerting pressure on gold prices despite the Fed’s decision to temporarily halt its rate increases in September. Jerome Powell’s communication conveyed an unwavering stance on maintaining interest rates at a restrictive level until sustained inflation control is achieved. Concurrently, oil prices faced headwinds, influenced by the Fed’s hawkish tone and compounded by a lower-than-expected reduction in U.S. stockpiles.
All eyes are currently trained on the Bank of England‘s impending interest rate decision, amplified by lower-than-anticipated UK Consumer Price Index (CPI) figures that have fueled speculation of a potentially more dovish monetary policy stance from the British central bank.
