US Fed Meeting Countdown Begins! How Jerome Powell’s Speech Can Redefine The Gold Price Rally

The much-awaited US Federal Open Market Committee (FOMC) meeting is set to conclude on Wednesday, October 29, followed by a media briefing from US Fed Chair Jerome Powell. The central bank is widely expected to announce a 25-basis-point rate cut, marking a crucial policy shift amid growing economic uncertainties.

The US Fed meeting in comes as gold prices enter a consolidation phase after a remarkably strong rally over the past two to three months. While gold price movement depends on a range of factors, let's understand how US Fed policy decision will impact the gold price movement.

US Fed Meeting To Conclude Today | All You Need To Know

Two-day long US FOMC meeting began on Tuesday and will conclude on Wednesday, October 29. The Federal Reserve is expected to announce a widely anticipated interest rate cut. Beyond interest rates, investors will be closely monitoring other details like the situation of the US economy, growth and inflation outlook, and other macroeconomic indicators.

The US Federal Reserve meets on a regular interval to discuss interest rates, whether to cut, raise or maintain them. The interest rates influence a range of aspects in an economy, including borrowing costs, inflation, and overall economic growth. The committee also discusses a range of issues like employment, inflation targets, and liquidity in the financial systems.

Record Gold Price Rally And Impact Of US Fed Meeting

Generally, US Fed rate cuts increases the demand for gold as a safe-haven asset due to reduced returns on bank deposits and bonds, and other factors. As a result, increased gold demand could fuel the gold prices.

How Jerome Powell's Speech Can Redefine The Gold Price Rally?

The US Fed meeting has come against the backdrop of a 20-day US shutdown uncertainty, hence comments from Jerome Powell could provide clarity and direction regarding the monetary policy ahead and overall economic health, believes Manav Modi, Analyst, Precious Metals at Motilal Oswal Financial Services Ltd.

"Even if there's a rate cut, the comments in September were not very dovish. They emphasised being data-dependent and moving cautiously. While there is certainly pressure from US President Donald Trump, Governor Powell remained cautious. If the same stance continues in October, where a rate cut happens but his comments suggest caution, or he notes that rate cuts for December or next year are still undecided, then that could cap some of the immediate rise in both gold and silver," Manav Modi told GoodReturns in an exclusive interview earlier this month.

US Fed Meeting: When And Where To Watch?

The US Federal Reserve is will announce the meeting outcome at 2 pm EDT on Wednesday. People in India can tune into the announcement at 11:30 pm on Wednesday. US Fed Jerome Powell speech will begin at 2:30 pm EDT, midnight IST. US Fed meeting outcome and Powell speech can be watched at the US Federal Reserve's official YouTube Channel.

Gold Rate Near Record-High

Gold rates have increased by more than 50% since the beginning of the year. The record-breaking gold price rally entered into a consolidation phase over the last ten days. The international gold rate on Wednesday reclaimed its $4,000 per ounce mark after falling to a three-week low mark on Tuesday, according to Trading Economics. Factors like US Dollar movement, US-China trade talks, central bank gold buying, etc also impact the gold price movement.