Gold gives ground, and the United Dollar licks its Wounds

Let us check the news for the market. Markets have now somewhat calmed for a while before the potential next storm. This was after the massive dollar sell-off and the surge of gold earlier in the week as tensions mount before the Federal Reserve’s decision. The United States coronavirus figures, hopes for vaccines, and the slow-moving fiscal stimulus negotiations are all in the mix.

Moreover, midway between the new high of #1,980 and the 2011 peak of around $1,921.50, gold is stabilizing at approximately $1,950. Within 18 months, Bank of American foresees a level of $3,000. Moreover, Goldman Sachs sees the precious metal increasing to $2,300. Silver has also seen a massive rally as well. This is according to GS. JP Morgan is confident about the XAU/USD pair in the short term.

The United States dollar licks its wounds after a sell-off early this week. Moreover, stocks edge lower because the speculations across the Federal Reserve’s decision is rising.

Dollar and Others

The most powerful central bank of the world is set to leave its policy unchanged. This is after its massive monetary stimulus earlier in the year. Moreover, it has already signaled no rate hikes, at least until 2022.

Jerome Powell is Chairman of the Federal Reserve. People will most probably ask him concerning its recent extension of lending programs, how lawmakers can play their part, and the potential for controlling the yield curve. Worries concerning signs related to the United States economy might further weigh on the greenback.

Senate Republicans cannot fully agree on the plan presented earlier this week by their party. This is days ahead of the expiry of federal benefits of unemployment. While Democrats prefer only a minor cut, the program includes slashing this support by a third. Also, both sides are at odds over liability issues. They blame each other and acknowledge that talks are only at the beginning.

This is the current news of the market.