The so-called ‘dot plot’, i.e. the interest rate forecasts of the individual FOMC members, is likely to attract particular attention at this week's Fed meeting. 

US data has been mixed of late. While economic data has been rather disappointing, price data has pointed to ongoing inflationary pressures. Against this backdrop, we believe that the central bankers are unlikely to change their assessment, leaving the ‘dots’ more or less unchanged. This would probably be positive for Gold, as some market participants are likely to expect an upward revision of interest rate expectations following the US inflation data.