By Dmitriy Gurkovskiy, Chief Analyst at RoboForex

The Gold price is barely moving although the short-term market situation is not in favour of the precious metal. On Monday, 1 November 2021, the troy ounce costs $1,788. Gold has been rather volatile recently and definitely shows an inverse correlation to the USD.

It’s safe to say now that the Gold price will fluctuate pretty much this week in anticipation of the US Fed meeting. The regulator is slowly moving towards the reduction of the QE programme but this factor has already been included in the “greenback” price. If the Fed announces the QE reduction and hints at some more fiscal moves in the future, Gold may rise.

A lot of attention is currently paid to American inflation. If the CPI and its components continue growing, the demand for Gold as a “safe haven” asset will surely expand. The inflation rally calls into question the rate and prospects of economic growth and that won’t make market players happy.

Disclaimer

Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.