Although the Central Bank is expected to keep the rates stable at 4.25%-4.50%, all unexpected ribs can cause sales pressure, while a dovish posture can feed a different leg higher.
Silver (XAG/USD) retains almost $ 34.07, slightly lower after touching an intraday layer of $ 33.86. The metal remains in a consolidation phase, balance between dollar strength and speculation that the FED can turn to speed reductions.
A more Dovish Powell could attract renewed purchasing in silver, which would strengthen its role if both a safe port and an industrial.
US Dollar is recovering as Fed Decision appears
The US Dollar Index (DXY) recovered to 103.40 after touching a low point of five months, while traders adapted their positions before the FED announcement. A stronger dollar usually weighs on gold, but having weaker economic data are rally tempered.
The sale of February grew by only 0.2%, and missed the predicted 0.7%, while the downward revision from January to -1.2%increased concern about the delay in consumer demand. This has exerted the Federal Reserve pressure to relieve monetary policy instead of later.
In the meantime, the newest economic stimulation measures from China have yielded some optimism, with the sale of retail trade by 4.0% yo -yo and industrial production increases by 5.9%. However, gold remains very sensitive to the expectations of the FED rate and any deviation from market consensus can dictate the next Grand Price Movement.