Is the Fed set to send gold higher?
Short term interest rate markets are pricing in nearly a 100% chance of a Fed hike on Wednesday this week when the Fed meet. Interest rates are expected to rise to 5.375% from 5.125%.
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Read MoreIs the Fed set to send gold higher?
Expect EURUSD volatility over US CPI print
On Wednesday at 13:30 UK time the US CPI print will be released. The headline is expected to fall to 3.1% from 4% prior & a reading below 2.9% would likely weaken the USD. The core reading is also expected to fall to 5% from 5.3% prior, & a reading below 4.9% should also weaken the USD. The print that should boost the USD would be if both headline and the core come in above market’s maximum expectations.