Gold erases Tuesday's losses, trades above $1,490 ahead of key US data
- 10-year US Treasury bond yield posts losses on Wednesday.
- Wall Street's main indexes look to start the day flat.
- Coming up: Third-quarter GDP growth data from the US and FOMC policy announcements.
The XAU/USD pair closed the day below $1,490 on Tuesday but staged a technical rebound while investors are getting ready for the key macroeconomic events in the United States. As of writing, the pair was up 0.35% on the day at $1,493.
Crucial events to watch out for
The Automatic Data Processing's (ADP) private-sector employment data from the United States will be followed by the first estimate of the third quarter Gross Domestic Product (GDP) growth readings. Later in the day, the Federal Open Market Committee (FOMC) will announce the interest rate decision and publish the policy statement. Finally, FOMC Chairman Jerome Powell will be delivering his remarks on the policy outlook at 18:30 GMT.
FOMC Preview: What 11 major banks are expecting from October meeting?
Previewing the data, “We expect the Fed to cut the target range for the federal funds rate by 25 bps on October 30,” said Rabobank analysts. “The Fed may also indicate that it thinks the mid-cycle adjustment has come to an end. However, we expect a recession in 2020 that will force the Fed to cut rates all the way to zero before the end of 2020.”
Ahead of these key data and announcements, the 10-year US Treasury bond yield is posting modest losses on the day and Wall Street's main indexes point out to a flat start with the S&P 500 Futures staying unchanged on the day and confirming the neutral market sentiment.
Technical levels to consider