The gold market witnessed its fourth consecutive session of growth on Wednesday, as investors globally await crucial decisions from several major central banks, including the U.S. Federal Reserve, the Bank of Japan, and the Bank of England. This slight surge in gold prices follows a summer of fluctuating values within a narrow range and a general downward trend.
Market participants are eagerly waiting to see if the Federal Reserve will align its strategy with that of the European Central Bank (ECB). The ECB, earlier this month, hinted at reaching the end of its interest-rate hikes cycle. This has piqued investor interest in whether Jerome Powell, Chairman of the Federal Reserve, will also indicate a halt to further rate increases in the near future.
The recent uptick in gold prices has ignited hopes among traders for a clearer market direction following Wednesday’s Federal Reserve decision and subsequent press conference. Craig Erlam, a senior strategist at OANDA, proposed that a pause in interest rate hikes, mirroring the ECB’s recent stance, might be an ideal scenario for gold prices. However, he also highlighted the need to consider various other factors resulting from the meeting’s outcomes.
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