On Wednesday, the price of gold was quiet and hovered around $2,030 an ounce. It didn’t move much as it stayed within a narrow trading band. This happened while investors were getting ready for a big event later in the day. They were waiting for the US Federal Reserve to make an announcement about its plans for interest rates.
Most people think the Federal Reserve won’t change interest rates this time. But what’s really grabbing everyone’s attention is what Jerome Powell, the head of the Federal Reserve, will say after their meeting. Everyone wants to know if he’ll give any hints about whether interest rates might go down later in the year.
Recently, the US shared some economic reports, and the news was better than what many were expecting. This made people less hopeful about interest rates going down. Because of this, the price of gold felt some pressure.
When people looked at the predictions on the CME’s FedWatch Tool, they noticed a change. At the start of the year, many thought there was a 73% chance that the Federal Reserve would lower interest rates in March. But now, that chance has dropped to less than 50%.
In other news, investors are being very careful. They are worried about possible bigger conflicts in the Middle East. This worry comes after a recent event where US troops were attacked by a drone. This happened near the border of Jordan and Syria just last