GOLD PULLS BACK AHEAD OF FED RULING
- Gold has pulled back down ahead of the Federal Reserve policy meeting announcement on Wednesday.
- Better-than-expected US Retail Sales data released on Tuesday caused the backslide in the precious metal.
- Bridgewater Associates CIO Ray Dalio considers a 25 basis points rate cut as more appropriate in the current context.
Gold (XAU/USD) trades in the $2,570s on Wednesday, ahead of the main financial-market event of the week: the Federal Reserve (Fed) policy meeting announcement at 18:00 GMT.
Gold surges as bets the Fed will double cut increase
Gold hit a record high of $2,589 at the start of the week after market bets that the Fed would make a double-dose 0.50% cut to interest rates at its meeting later today rose sharply.
A bigger rate cut from the Fed would be positive for Gold because it lowers the opportunity cost of holding the yellow metal, which is a non-interest-paying asset. This makes it more attractive to investors.
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