If you are a gold trader, you should get ready for a brutal week. FOMC Meeting is scheduled this week. Whenever FED meets something happens in the market. Gold is already down and if FED decides to raise the interest rates, this could be very negative for gold. USD is getting strong, this makes gold less appealing to the investors as a safe haven. Whatever gold traders beware of the FOMC Meeting this week.
High interest rates will wreak havoc with a number of asset classes. “I think it could be gold,” said Gina Sanchez, founder of Chantico Global. “Expectations before this week were that the Fed was going to continue to toe the line. But we’re starting to see a lot of evidence—particularly the paper that came out of the San Francisco Fed—that suggest that in fact the markets may be way too dovish and that there’s plenty of evidence we could actually see the Fed move up their timeline.”