FOMC Elevates Precious Metals

29/07/2021

The price of silver and gold continue to rise capitalizing on the Fed’s stance and the weaker US Dollar.

Following the Fed on Wednesday, the price of the white metal rose higher by 1.2% and reached $25.22 level. This was made possible by silver bulls who capitalized on the weaker US Dollar.
 
On the other hand, gold’s price improved towards 200-SMA following the dovish Fed. The data released on Wednesday regarding the fall of efficacy of Pfizer-BioNTech’s vaccine also had its impact on market sentiments. This helped gold keep its safe-haven appeal, helping it reach the $1,821 level.
 
The US Dollar Index (DXY) continued to remain under pressure for the fourth consecutive day, at around 92.25. The Federal Reserve not announcing reduction in its assets program is seen as the main reason for this. DXY sellers, however, remain hopeful witnessing the clear downside break of the monthly support line.
 
The downbeat performance of the US Dollar following a dovish Fed helped EUR/USD to better its position. The quote is now trading at 1.1855, recovering from the low of 1.1753 by 0.11% intra-day.
 
Similarly, the cable pair GBP/USD also continued its winning streak for the fourth day in a row, rallying higher by 0.15% intraday around 1.3925.
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