<\/p>\n
\n Share:<\/span><\/p>\n Gold price (XAU\/USD) strengthens\u00a0as the United States<\/a> Automatic Data Processing (ADP) has reported a weaker demand for labor that what anticipated by the market participants. US private employers recruited 107K job-seekers in January, which were significantly lower than expectations of 145K and the prior reading of 158K. A slowdown in\u00a0the labor demand is expected to scale up expectations for early rate-cuts by the Federal Reserve (Fed).<\/p>\n Market volatility is expected to remain escalated as investors await the monetary policy decision by the Fed.\u00a0The Fed is expected to deliver a steady interest rate decision for the fourth time in a row. Investors will keenly focus on the bank\u2019s guidance \u2013 future expectation \u2013 for interest rates, and that will probably direct\u00a0action in the FX domain.<\/p>\n Amid easing price pressures, further quantitative tightening is not expected from the Fed, therefore, market participants will focus on \u201cwhen and at what pace\u201d the central bank will start reducing interest rates. Investors are anticipating that the Fed will commence the rate-reduction process from May.\u00a0<\/p>\n Previous Fed meeting guidance was for 75 basis points (bps) of cuts in interest rates in 2024. The market has been focusing on expectations for early cuts, however, comments from individual policymakers have been advising for keeping interest rates elevated at least for the first-half of the year \u2013 until they become confident that the underlying inflation rate will return to the Fed\u2019s 2% target in a timely manner.<\/p>\n Gold price jumps to near the crucial resisatnce of $2,050 as US Dollar<\/a> falls sharply after US ADP reported a slower labor demand in January. The outlook\u00a0for Gold price is bullish ahead of the Fed<\/a> policy decision. The precious metal is forming a Symmetrical Triangle chart<\/a> pattern on the daily chart. This suggests a probable eventual breakout in the direction of dominant uptrend, although this type of triangle can break in any direction.\u00a0<\/p>\n Momentum is still weak as the 14-period Relative Strength Index (RSI) oscillates in the 40.00-60.00 range.<\/p>\n <\/p>\n Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.<\/p>\n<\/section>\n<\/div>\n <\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Share: Gold price rises swiftly\u00a0ahead of Fed\u2019s monetary policy announcement. The Fed is expected to deliver a steady interest rate decision while the future outlook on rates will be the main focus. US ADP showed private payrolls at 107K against projections of 145K. Gold price (XAU\/USD) strengthens\u00a0as the United States Automatic Data Processing (ADP) has […]<\/p>\n","protected":false},"author":2,"featured_media":7217,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,497,366,484,255,250,252,247,253,249,5212,256,254,485],"class_list":["post-239076","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-employment","tag-fed","tag-gold","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-seo","tag-wallet","tag-wordpress","tag-xauusd"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/239076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=239076"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/239076\/revisions"}],"predecessor-version":[{"id":239078,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/239076\/revisions\/239078"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/7217"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=239076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=239076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=239076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Daily Digest Market Movers: Gold price remains upbeat\u00a0ahead of Fed meeting<\/h2>\n
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Technical Analysis: Gold holds climbs to\u00a0near $2,050<\/h2>\n
Fed FAQs<\/h2>\n
When prices are rising too quickly and inflation is above the Fed\u2019s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money.
When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.<\/p>\n<\/section>\n
The FOMC is attended by twelve Fed officials \u2013 the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.<\/p>\n<\/section>\n
It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed\u2019s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.<\/p>\n<\/section>\n