On Friday, the total value of U.S. national debt surpassed $20 trillion. What does it imply for the gold market? The worsening of the U.S. fiscal position could support gold prices, as it was during the 2000s.
The dollar index closed the day at 91.54 and currently it is 91.46. As we await the Federal Reserve later today Gold markets continue to grid the sideways. What can we expect from the Federal Reserve on Wednesday? There is virtually no chance that the benchmark rate of 1.25% will change, so the markets are focusing on the Fed’s bloated balance sheet, which currently stands at $4.2 trillion. The markets will also be keeping a close eye on the tone of the rate statement, as an optimistic view of the US economy could boost the greenback.