On Tuesday, Gold touched its highest level in a month after USD declined amid uncertainty surrounding the outcomes of the U.S. Presidential Election. The precious metal settled at $1,290 as a new poll suggested Republican candidate Donald Trump could win the presidency.
Markets are awaiting the Federal Open Market Committee (FOMC) Meeting Minutes, which are likely to come in line with the previous market expectations of victory for the Democratic candidate, which could boost the USD.
On the other hand, there are concerns that the Federal’s policy may change if Clinton does not make it to the White House. The U.S. dollar index fell as much as 60 pips yesterday and settled at 97.70.
As the Fed's minutes could affect the precious metal negatively, it could settle around the resistance level of $1,300 during the week.
GBP settled at $1.2274 after Mark Carney said he would extend his term in office until 2019.
The BoE could keep its monetary policy unchanged as Britain's economy grew faster than expected in the third quarter of 2016. While inflation declined to its lowest level in two years, which dash the hopes of a new cut in interest rates during the current meeting.
Oil prices failed to maintain their gains that were obtained after OPEC members approved a document outlining the exporter group's long-term strategy. U.S. crude touched $46 before recovering. Technically, as U.S. crude is trading under pressure, it could decline to $45 during the week due to the lack of confidence in the markets, concerning reaching an agreement to cut production.
The most important economic events:
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