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Gold Treads Water Ahead of a Cascade of Central Bank Hikes. Where to for XAU/USD?

February 1, 2023

Via: DailyFX

Gold had a look lower at the US$ 1,900 handle in the US session but quickly recovered back above US$ 1,925. At the same time, the DXY Index, a benchmark measure of the US Dollar, moved to higher ground before collapsing into the New York close.

Wall Street had a stellar session on hopes that the Fed Chair Jerome Powell might soften the hawkish stance at today’s Federal Open Market Committee (FOMC) meeting.

Prior to the media blackout, several committee members had been sprouting the message that 25 basis points seemed like the appropriate dosage for tightening and that rates will need to remain high for ‘a long period’.

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