Gold Sees Good Bounce, US Fed Seen Holding Monetary Policy Steady In Coming Months

Published on Jul 29, 2021 12:00

Gold saw a good bounce today in Asia as a slide in the US dollar boosted the metal. Dollar sank after the US Federal Reserve said that it is committed to using its full range of tools to support the US economy in this challenging time, thereby promoting its maximum employment and price stability goals. The Federal Open Market Committee, which concluded its two-day monetary policy meeting Wednesday afternoon, left the target range for its federal funds rate unchanged at 0 to 0.25%, and said it will continue with its $120 billion-a-month bond-buying program. The Committee expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the Committee`s assessments of maximum employment and inflation has risen to 2% and is on track to moderately exceed 2% for some time. The Fed also launched a standing repo facility to boost liquidity to the market, with a cap of $500 billion. This pushed up the yellow metal sharply in Asia and the commodity currently trades up 0.84% at $1815 per ounce.