The price of Gold dwindled on Tuesday morning, With the dollar gain in the forex market reducing the value of the yellow metal. Commodity market investors are anticipating the effects of monetary policies from the most distinguished central banks, as inflationary pressure continues to ravage major economies.
Gold futures edged down 0.19% to $1,792.40 by 11:19 PM ET (3:19 AM GMT). The dollar, which normally moves inversely to gold, inched up on Tuesday.
The United States Federal Reserve will disclose its latest policy on Wednesday the 2nd November 2021. The task of suppressing surging prices and wage increase will be the center of attraction at the policy meeting, as the feds seek to stabilize the economy and restore lost jobs due to the COVID-19 pandemic.
Goldman Sachs forecast that predicts that the Federal Reserve will increase by July 2022, which is a year earlier than its initially forecasted date. This is due to expectation that inflation will maintain its increasing trend.
On the other hand, The Bank of England will reveal its policy on Thursday, in what could be its most unpredictable interest rate decision in years. Investors are mulling the chances of the central bank announcing its first interest rate hikes since the beginning of the COVID-19 pandemic.