Global trade optimism dims safe-haven appeal

Key market themes

FEDERAL Reserve policymakers have kept interest rates steady at 1.5 per cent to 1.75 per cent as US economic data shows signs of stability. Dot plot projections on the US Federal Funds Target Rate by FOMC (Federal Open Market Committee) members are pointing towards a neutral stance for monetary policy in 2020.

A sharp sell-off in the US dollar post-FOMC meeting has provided much support to the precious metal despite positive developments on the US-China trade front. Gold prices though receiving strength from a weaker greenback will experience strong negative pressures over heightened market optimism.