Futures traders look for gold to build on its recent gains now that the Federal Open Market Committee has surprised markets with a dovish tilt for the second meeting in a row.
After a two-day meeting Wednesday, the Fed’s so-called dot-plot – which shows the expectations on interest rates by individual policymakers – showed that officials collectively do not envision any rate hikes in 2019. By contrast, policymakers had projected two rate hikes back in December.
The Fed’s post-meeting communiqué said continuing economic growth and a strong jobs markets are “the most likely” outcome for the U.S. economy, but nevertheless, officials also said they will be “patient” with monetary policy due to concerns about potential economic slowing. The opening line of the central bank’s monetary-policy statement said that the “labor market remains strong but that growth of economic activity has slowed from its solid rate in the fourth quarter.” The Fed’s economic projections see the U.S. economy growing 2.1% this year, compared to the 3% growth for 2018.
Comex April gold traded as high as $1,320.20 so far Thursday, compared to a low of $1,298.10 on Wednesday. As of 10:35 a.m. EDT, the metal had backed down from the highs, trading up $8.80 for the day to $1,310.50 an ounce.
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com