“(Today) is all about the Fed,” Ava Trade analyst Naeem Aslam said. “We are anticipating a very hawkish message from them.”
Gold is highly sensitive to the prospect of rising rates, which lift the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
“What we are focused on right now is the feared trajectory of the dollar, which looks very bullish,” Aslam said. “This is not such good news for gold.”