Investors are awaiting the results of the U.S. Federal Reserve's meeting that starts later on Tuesday, as the Fed is highly expected to raise interest rates by 0.25%. The Federal Reserve believes that the U.S. economy is gaining strength.
Gold prices settled yesterday as the U.S. Fed rate rises hope brightens. As investors are seeking to buy safe haven asset due to the geopolitical uncertainty, they will also focus on Wednesday's Dutch elections as the yellow metal could be boosted due to the uncertainty over the EU’s outlook.
Technically, the precious metal could trade in a limited range between $1,200 and $1,210 during the day. However, it could touch new highs, as the UK could trigger Article 50 by today.
The Sterling pound recovered vs. USD and touched $1.2220; however, Nicola Sturgeon, the First Minister of Scotland has confirmed that she will start proceedings for a second independence referendum.
Oil prices fell sharply yesterday due to the bearish U.S. crude oil inventories report, stoking worries a global glut could continue even as the Organization of the Petroleum Exporting Countries (OPEC) tries to control prices with output restrain. In addition, U.S. crude traded at $48.35.
The most important economic events:
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.