The XAU/USD gold price has been volatile in recent weeks, but it appears to be contracting around the $1,920 mark as Federal Reserve policy takes center stage. The Federal Reserve has been a major factor in the gold market, as it has been manipulating interest rates and other economic policies to influence the gold price.
The Federal Reserve has been actively engaged in quantitative easing (QE) since the start of the pandemic. QE is an economic policy where the central bank buys government bonds and other assets in order to increase the money supply and stimulate the economy. This has had a major impact on the gold price, as investors have been buying gold as a hedge against inflation due to the increased money supply.
The Federal Reserve has also been actively engaged in setting interest rates. Lower interest rates make it cheaper for investors to borrow money, which can lead to increased demand for gold. The Federal Reserve has kept interest rates low for some time, and this has helped to keep the gold price relatively stable.
The Federal Reserve has also been actively engaged in other economic policies that can affect the gold price. For example, the Fed recently announced that it would be purchasing corporate bonds in order to help support businesses during the pandemic. This has had a positive effect on the gold price, as investors have seen this as a sign of economic stability and have been buying gold as a safe-haven asset.
Overall, it appears that the Federal Reserve’s policies have had a stabilizing effect on the XAU/USD gold price. The gold price has been volatile in recent weeks, but it appears to be contracting around the $1,920 mark as Federal Reserve policy takes center stage. Investors should continue to monitor the Federal Reserve’s policies and their impact on the gold price, as these policies could have a significant impact on the gold market in the coming months.
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