Gold in Holding Pattern Ahead of FOMC Statement

Frankfurt (Jan 28)  Gold is steady on Wednesday, following gains a day earlier. In the European session, the metal is trading at a spot price of $1292.10. In the US, the markets are keeping a close eye on the FOMC Statement, which will be released later in the day. The only other event is Crude Oil Inventories, with the markets expecting a strong downturn in the upcoming report.

The Federal Reserve will be in the spotlight on Wednesday, with the release of a policy statement at the end of a two-day meeting. The Fed is expected to continue to counsel patience regarding an interest rate hike, and persistently weak inflation means the Fed can take its time before having to make a monetary move. The markets will be combing through the statement and any clues as to the timing of rate hike could shake up a listless EUR/USD.

Tuesday was a busy day in the US. Durable Good reports disappointed, as Durable Goods Orders plunged 3.4%, marking a 4-month low. There was no relief from Core Durable Goods Orders, which declined by 0.8%, its fifth drop in six readings. The markets had expected gains from both indicators. There was much better news later in the day, as CB Consumer Confidence jumped to 102.9 points, crushing the estimate of 95.3 points. New Home Sales followed suit, rising to 481 thousand, well above the forecast of 452 thousand.

Source: FXstreet