Gold prices leaped on Wednesday,
20th March, to $1.309 an ounce,
up 0,19% on that day, following the Federal Reserve's
unexpected dovish stance. The FOMC announced its decision to keep
interest rates unchanged (between 2,25% and 2,50%) and no further
rate hikes for 2019 versus the initially prognosed two rate hikes.
It also announced that it will end its balance sheet runoff in
September this year. This decision led to the US dollar plunging
over night against its rival currencies and the EUR/USD surging to
a six-week high.
Monetary Policy and the direction of the US Dollar have been a
key trend to watch out for in 2019 to determine the direction of
gold performance, but why is this so important?
