Gold Price is on standby ahead of the Federal Reserve Interest Rate Decision. A cautious Fed could trigger a correction higher in the yellow metal, economists at Commerzbank report.

Another sharp increase in jobs created could weigh on gold 

“A rate hike of 50 basis points is generally expected and is fully priced in according to the Fed Fund Futures. It will therefore be almost more interesting to hear what Fed Chair Powell has to say about the bank’s future monetary policy. If he sounds very hawkish and indicates that other major rate hikes will be made at the following Fed meetings, this could push the US dollar and bond yields further up, which would presumably depress XAUUSD.” 

“If Powell were to sound more cautious, the gold price would probably profit and could recoup some of the losses it has suffered in the past few days.” 

“The ADP labour market report will be published in the US this afternoon ahead of the Fed interest rate decision. The Bloomberg consensus anticipates another sharp increase in the number of jobs created. This could weigh on the gold price this afternoon.”