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Gold’s direction after FOMC — #SaxoStrats
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Bond yields moved lower, the US dollar weakened and gold jumped higher following FOMC's rate hike. Saxo Bank’s head of commodity strategy Ole Hansen examines the aftermath for gold.
It is the third time in a row that a US interest rate hike has had a positive impact on gold, says Hansen, due to the market pricing in a greater risk than what materialises.
Despite the far-right candidate being defeated in the Dutch election, he says that several upcoming geopolitical developments remain that could affect the performance of gold.