Monday May 01, 2017 08:44
Standard Chartered looks for gold prices to consolidate in the foreseeable future, unless the market gets a boost this week from U.S. economic data or rhetoric following a two-day meeting of the Federal Open Market Committee on Wednesday.  Analysts say gold’s strong correlation with the U.S. dollar has broken down, suggesting that prices are likely to trade range-bound at lower levels in the near term. “Gold had a strong correlation with the USD after the Brexit vote, but is now tracking 10-year U.S. Treasuries most closely,” Standard says. “We do not expect the Fed to hike rates at its 3 May meeting, and our rates strategists expect a benign outcome to coming risk events that should support 10Y USTs in the 2.30-2.65% range.”

By Allen Sykora of Kitco News