On Wednesday Asia session Gold quotes have reached maximum values since July of this year, amid the continuing decline in the dollar. The main reason for the formation of the current upward move is the upcoming FOMC meeting, the results of which will be summed up today. This is the last meeting of the regulator this year, so the economic forecast for the next year will be presented, the issue of changing the interest rate will be considered and, most importantly for investors, the forecast for 2019 will be announced.
Initially, it was predicted that the Fed would raise interest rates three more times in 2019 in order to reach a neutral value when the economy is not stimulating or restricting. Unexpectedly some weeks later, Jerome Powell said that the level of interest rates is already very close to a neutral value. Accordingly, now, taking into account the influence of some Fed representatives comments, many experts predict only one rate increase in 2019. Such a decision will undoubtedly be a strong blow to the dollar, even despite the possible decision to raise the rate at the upcoming meeting, since the current price of the dollar contains high rates of increase in the rate for 2019. Changing downward forecasts will weaken the dollar, which will be a strong support factor for all precious metals. Now the market is set to follow such scenario, so the growth of gold quotes continues.
In addition to the announcement of the decisions on rates and the FOMC press conference, today in the United States there will come out data on sales in the secondary housing market, which can also have a strong short-term impact on the session.