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The yellow metal has seen another rather subdued week of trading, with prices maintaining a quiet sideways range.
The main focus this week was on the FOMC on Wednesday. The Fed delivered a message of caution and concern, citing a great deal of uncertainty in the outlook.
This has capped the US dollar upside, for now, keeping gold prices supported.
The Fed went into detail regarding its new inflation targeting policy which has recently shifted away from targeting 2% inflation. It is now allowing inflation to run hotter, aiming to achieve an average of 2% inflation.
With this new shift, the Fed has essentially signaled to the market that it should no longer expect rates to be lifted as inflation hits 2%. It has also reassured traders that rates will be kept at current levels until 2023.
With this in mind, the outlook for gold remains bullish with plenty of scope for further upside in the medium term.
Gold Holding Above Trend Line Support
Gold prices continue to test the bullish tr...
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